The Senate has today rejected the Albanese Government’s cut to the private health insurance rebate for older Australians. Senators from across the chamber backed a motion from Shadow Minister for Health and Aged Care, Senator Anne Ruston, and Senator Jacqui Lambie to take the Bill off the Senate’s agenda, killing off the bill.
The successful motion discharges the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 from the Senate Notice Paper and forces the Government back to the drawing board on its unfair legislation. The Bill would have e cut the rebate for more than 3 million Australians aged over 65, including around 1.2 million pensioners.
“Today the Senate stood with older Australians. Labor was left standing alone with its cuts,” Senator Ruston said. This is a win for every pensioner who has paid their premiums for decades and was about to be punished for it.
“Mark Butler should take the hint. Don’t try to sneak this cut back onto the agenda. Drop it for good.”
Of the 635 submissions published by the Senate inquiry into the Bill, just five supported it.
Documents released under Freedom of Information show the Health Department expected 78,000 older Australians to drop their cover by 2029-30, almost double the 44,000 figure Health Minister Mark Butler used publicly. The Department’s own figures show a single person over 70 on Gold cover would have paid around $400 more a year.
“If pensioners can’t afford to keep their cover, they don’t stop needing care. They put off treatment, get sicker, and end up on public hospital waiting lists that are already far too long,” Senator Ruston said.
Senator Ruston thanked the older Australians, families, doctors, hospitals, health funds and community groups who spoke up against the cut.
“This happened because people made their voices heard. Hundreds of older Australians wrote to the Senate inquiry, gave evidence and contacted their senators. Groups like National Seniors Australia, COTA, Catholic Health Australia and Members Health fought hard for them. This is their win,” Senator Ruston said.
“I also want to thank Senator Lambie and every senator who put older Australians ahead of politics today.”
Shadow Minister for Regional Health, Dr Anne Webster said it was a huge relief for regional Australia.
“Our regional private hospitals serve millions of older Australians, and this cut put some of them at real risk of closing. When a regional private hospital closes, those patients don’t disappear. They end up on the waiting list at a local public hospital that is already struggling for staff and specialists,” Dr Webster said.
The Coalition will oppose any attempt by the Government to bring this Bill back.
