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Legislation introduced for the government's 30% rebate for private health insurance.

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Media release

The Hon Dr Michael Wooldridge

Minister for Health and Aged Care


MW 216/98

12 November 1998





The Minister for Health and Aged Care, Dr Michael Wooldridge, this morning introduced the legislation enabling the Government’s 30% rebate for private health insurance to be introduced from 1 January next year, replacing the current Private Health Insurance Incentives Scheme.


Announced as part of the Government’s tax reform plan Not a New Tax, A New Tax System in August this year, the rebate will give 30% back off the cost of private health insurance premiums paid by contributors.


The rebate is available to every person with private health insurance, whatever their level of cover, income or type of membership. For example, a family or older couple paying $2,500 a year in private health premiums would get back $750 from the Government every year.


People will be able to choose the method of payment that suits them best. It will be available as an up-front premium discount through their health fund, as a rebate in their annual tax return, or as a direct payment from the Government.


Introducing the legislation this morning, Dr Wooldridge noted that published opinion polls had found nearly 70 per cent support, and that the 30% rebate will help stem the decline in private health insurance membership and help restore the balance to the health system.


Dr Wooldridge warned that falling membership in the private health insurance funds could threaten the viability of the public hospital system.



Media contact: Bill Royce, Dr Wooldridge’s office, (02) 6277 7220