Private Health Insurance Rebate Mean-test Becomes Law
Health Minister Tanya Plibersek welcomed the passage of legislation through the Parliament to means-test the private health insurance rebate on 16 March 2012.
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16 March 2012
Health Minister Tanya Plibersek today welcomed the passage of legislation through the Parliament to means-test the private health insurance rebate.
“This is a win for low and middle income earners, who have been forced to subsidise the private health insurance of higher income earners through their taxes.”
Ms Plibersek said the legislation will save taxpayers $2.4 billion over the next three years.
“The government is committed to strengthening the Australian health system and ensuring people are provided with the best possible health care, where they need it, when they need it.”
“That is why we have passed this legislation – to ensure that every health dollar is spent in the best interests of patients.”
Ms Plibersek said the three Fairer Private Health Insurance Incentivesbills passed the House of Representatives in February and the Senate last night.
Under the government’s legislation to means-test the rebate, in the next financial year, individuals earning $84,000 or less, or families earning $168,000 or less will not be affected at all by the changes.
As income increases, the taxpayer funded subsidy decreases, however only singles earning more than $130,000 a year and families earning $260,000 or more in the next financial year will lose the rebate entirely.
For media inquiries, please contact Minister Plibersek’s office on 02 6277 7220
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