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

LABOR'S OWN DEPARTMENT ADMITS PENSIONERS WILL BE FORCED TO GO WITHOUT UNDER PRIVATE HEALTH TAX GRAB

Friday, 31 July 2026

Labor's own department has given the game away with internal documents warning pensioners would be forced to cut back on essentials, downgrade their cover, or drop it altogether and go without medical treatment under the Albanese Government’s private health insurance rebate cuts for over-65s

It comes amid new polling released today that blows apart Health Minister Mark Butler's claim that his $11 billion tax grab would only lead to 44,000 older Australians dropping cover, revealing almost 40 per cent of seniors in outer-suburban and regional Australia are now ready to drop their cover.

Shadow Minister for Health and Aged Care Senator Anne Ruston said many older Australians had told her they were already feeling the pressure of rising costs and that any increase in healthcare expenses would hit them hard.

"Affordable, reliable healthcare should be something you can count on, especially when you need it most, but Labor is ripping that away from older Australians,” Senator Ruston said.

“We know older Australians on fixed retirement incomes are the least able to respond to a price shock like this no wonder pensioners are already telling pollsters they're ready to walk away from their cover. Mark Butler has badly underestimated the damage his own policy will do.”

Documents released to the Coalition under Freedom of Information — 193 pages, the vast majority of them redacted — reveal internal case studies of "Barbara and Joe" would have to cut back on other expenses just to keep the cover they've held for most of their lives, and "Heather" would be forced to drop her cover altogether and go without a hip replacement.

Currently, under a policy introduced by the Coalition, Australians aged 65 and over receive an additional rebate on their private health insurance premiums. However, Labor's 2026-27 Budget included an $11 billion tax grab to abolish these higher rates entirely, slugging more than 3 million older Australians hundreds of dollars a year to maintain their private health cover.

Senator Ruston said the warnings form state ministers had today confirmed what the Coalition had said all along - that the Albanese Government’s policy was nothing more than a cost shift.

"Queensland, Tasmania and New South Wales have all told Mark Butler the that this cut isn't about fairness, it's Canberra dumping older Australians onto public hospitals and expecting the states to pick up the bill," Senator Ruston said.

“The Finity report handed to Minister Butler showed that for every $1 the Federal Government saves by cutting the rebate, the public health system will be charged $1.20 in extra hospital admissions. Maybe now he’ll finally listen.”

Senator Ruston said the Coalition introduced the higher rebates for over-65s because of our belief that older Australians should be supported to maintain their private health cover.

“We are fighting to stop this before it ever sees the light of day. We will do everything we can in the Parliament to block these changes and have called for a Senate Inquiry to pursue the truth about who will be most affected by this new tax,” she said.

"When Mark Butler's own department is writing cameos that show pensioners will be forced to go without, that's not a fringe scenario. It's the Government's own evidence of this policy in action.”

ENDS