Labor accused of introducing a ‘sneaky’ new tax on Australians

Developed over time first seen 3 months ago

Daily Mail · 3 months ago

The Coalition has accused the Labor government of imposing a “sneaky” new tax on older Australians by reducing the private health insurance rebate for people aged over 65. Critics say the change will increase premiums for pensioners and self-funded retirees, potentially prompting some to drop private cover and adding pressure to public hospitals; Labor’s broader policy is intended to redirect funding towards aged care.

The change was included in the 2026–27 budget and is expected to affect more than three million older Australians. Opponents claim many people will pay hundreds of dollars more each year, with some couples facing increases above $1,000, while the government argues that all savings from the revised rebate will support aged-care services.

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In short

Private health rebates for over-65s are being reduced.
Critics say millions of older Australians will face higher premiums.
Government says the money will fund aged care.

How this story developed

3 months ago The Coalition has accused the Labor government of imposing a “sneaky” new tax on older Australians by reducing the private health insurance rebate for people aged over 65.

Explained simply

Australia's government has long offered rebates (subsidies) to help older Australians afford private health insurance. These rebates reduce what people pay for their premiums, with the intention of encouraging private cover rather than relying on the public health system.

The Labor government has proposed reducing these rebates for people aged over 65 in its 2026-27 budget. The change would affect more than three million older Australians, with opponents claiming it would leave many paying significantly more each year for their insurance.

The government says money saved from the rebate reduction will be used to fund aged-care services. Critics counter that faced with higher costs, some pensioners and self-funded retirees would abandon private cover entirely, placing additional strain on the public hospital system.