Australia's Labor government failed to pass legislation cutting private health insurance rebates for older Australians after the Greens blocked the measure in parliament, demanding exemptions for pensioners.
The bill would reduce rebates for people over 65 starting April 2027, according to The Guardian. The government projected the change would save the federal budget AUD 3 billion. The Greens conditioned their support on a carve-out that would protect pensioners from the rebate cuts.
The Guardian reported that nearly 80,000 older Australians are expected to drop private health coverage by 2028-29 as a result of the government's proposal. The blockage leaves the Albanese government without the parliamentary numbers needed to pass the measure in its current form.
The dispute reflects tension within Australia's center-left coalition. Labor holds the most seats but lacks a majority in the upper house, where minor parties and crossbench members hold decisive power. The Greens' refusal to back the bill forces either renegotiation of the terms or abandonment of the savings target.