Opposition Leader Tony Abbott in Parliament yesterday. Photo: Alex Ellinghausen
Opposition Leader Tony Abbott has promised the Coalition would scrap the government’s means test on the health insurance rebate ”as soon as we can”.
He moved quickly as the legislation, which will reap $2.4 billion over three years, was passed by the House of Representative by 71-70. Its passage in the Senate is assured.
It will mean singles on $83,000 and families above $166,000 a year begin to lose the rebate, typically worth $1000 a year to families. It cuts out altogether for singles on $129,000, and families on $258,000.
Mr Abbott, under attack from Labor for making expensive commitments, was careful not to put a time on his promise.
There had been speculation he might keep the legislation, but there was strong feeling in the Liberal Party that the universal rebate, introduced by the Howard government, was a core policy.
The Liberal Party released an internet ad yesterday, using footage of Julia Gillard when she was health spokeswoman in 2006 saying the rebate would not be changed. But the government was already trying to impose the means test when Ms Gillard led to the 2010 election.
Mr Abbott said the rebate ”is an article of faith for the Coalition. Private health insurance is in our DNA.”
”Support for people who want to get ahead – it is our raison d’etre,” he told Sydney radio.
Speaker Peter Slipper, who had been challenged by the opposition to step down from the chair to oppose the legislation, said in a statement he ”sincerely regretted” not being able to vote against it.
”However … as Speaker, I do not have a deliberative vote.”
It was Mr Slipper’s defection that allowed the passage, because it reduced the number of crossbenchers the government needed.
The government denied that it planned a TV advertising campaign to explain the means test, which starts from July, but it has not ruled out newspaper ads.
Health Minister Tanya Plibersek rejected industry statements that 1.6 million Australians would withdraw from insurance and 4.3 million would downgrade to lower cover over the next five years.
”We don’t have any concerns that either people dropping out or downgrading will put extra pressure on the system,” she said.
Quarterly industry results released yesterday showed that health funds were enjoying record levels of growth, pumping $500 million in profits in the December quarter and experiencing the highest membership levels in 35 years.
Opposition health spokesman Peter Dutton said the means test ”represents a betrayal of the 12 million Australians who contribute to their own healthcare”.
”Two-and-a-half million of them will face massive increases in their private health insurance premiums, in some cases up to $2000 a year,” he said.
Many Coalition speakers decried the measure as ”class warfare” and predicted it would hit low-income members because they said the changes would lead to higher premiums.
Ms Plibersek said the claims were ”absolutely absurd”.
She said there were no plans for further changes to the means test or Medicare levy surcharge in the May budget.
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