Mark Butler (Hindmarsh, Australian Labor Party, Deputy Leader of the House) | Hansard source

I was asked why we have taken this decision, and I'm reminding the parliament that there are choices that every budget involves. We have made the choice to deliver more aged-care services and more aged-care support at home. Now, others may take a different choice—not to deliver that aged care, or to put it on the credit card. I make no judgement about that.

The impact of this will be to return to the original design of the private health insurance rebate when it was introduced by John Howard, which is not to have a different level of subsidy paid to households on the same income simply because of their age. What we will have now will be two households next to each other on exactly the same income—one of which happens to be over 65 and the other of which happens to be, for example, in their 40s or their 50s, with children—both in private health insurance, receiving the same level of subsidy from taxpayers. For most, that will be about a quarter of their health insurance bill paid for by taxpayers, and that will continue to be the case. (Time expired)

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