SENATOR THE HON ANNE RUSTON

SHADOW MINISTER FOR HEALTH AND AGED CARE

DEPUTY LEADER OF THE OPPOSITION IN THE SENATE

SENATOR FOR SOUTH AUSTRALIA

MEDIA RELEASE

Tuesday 15 September 2026

LABOR GAGS ITS OWN MPS ON $1.6 BILLION PENSIONER HEALTH TAX

The Albanese Government today voted down a Coalition motion to suspend standing orders and allow all Labor MPs to speak on the Private Health Insurance Amendment (Modernising the PHI Rebate) Bill 2026, which cuts $3 billion from the private health insurance rebate for over-65s.

The motion was defeated 87 votes to 43 in the House of Representatives, with the crossbench joining the Coalition against the Government.

Shadow Minister for Health and Aged Care Senator Anne Ruston said the vote showed Labor MPs had been gagged because their own Government knew what they might say.

“Labor won’t even let its own members speak on their mean-spirited tax on older Australians. If cutting this rebate was good policy, MPs would be lining up to defend it. Instead, they’re being silenced,” Senator Ruston said.

“The vote confirms that this is lazy legislation, backed by lazy assumptions, from a lazy minister, and now we know it’s a policy so indefensible that Labor won’t even trust its own backbench to argue for it.”

“If Government members had genuine confidence their constituents supported ripping $1.6 billion out of pensioners’ pockets, there would be no reason to stop them getting up and saying so. Their silence speaks volumes.”

The vote comes as Parliamentary Budget Office modelling, obtained by the ABC, confirmed that out of the $3 billion in total savings from the rebate cuts, close to $1.6 billion will be taken directly from age pensioners.

Senator Ruston said Labor backbenchers should be given the chance to explain to their own constituents why they are supporting a policy that will leave pensioners paying more for cover, or dropping it altogether.

“Australians deserve to hear from their local Labor member on this. Instead, the Government is running and hiding from its own $1.6 billion pensioner tax,” Senator Ruston said.

ENDS