The short answer
Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026: what it would change
The Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 is a government bill introduced in the House of Representatives on 25 June 2026 under the Health, Disability and Ageing portfolio. According to the official summary on the Parliament bill page, the bill amends the Private Health Insurance Act 2007 to provide that the private health insurance rebate percentage and calculation method for people aged 65 years and over are the same as those applying to people under 65 years of age, and makes a technical amendment to the Age Discrimination Act 2004. The bill is before the House of Representatives as of 10 August 2026. A Bills Digest has been prepared and the bill has been referred to the Senate Community Affairs Legislation Committee, with a report due by 7 October 2026.
This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.
The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.
Evidence review
What the bill is about
The Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 was introduced in the House of Representatives on 25 June 2026 by the Minister for Health and Aged Care, Mark Butler MP. The official summary on the Parliament bill page states that the bill amends the Private Health Insurance Act 2007 to provide that the private health insurance rebate percentage and calculation method for people aged 65 years and over are the same as those applying to people under 65 years of age, and that it amends the Age Discrimination Act 2004 to make a technical amendment.
The private health insurance rebate is a government contribution toward the cost of private health insurance premiums. It is income-tested and currently available to Australians who hold complying private health insurance and earn below certain thresholds. The rebate can be claimed as a reduction in premiums or as a tax offset.
Evidence review
How the rebate currently works
Under the current system, the Australian Government rebate on private health insurance is calculated as a percentage of the premium paid, with the percentage varying based on age and income. The rebate ranges from approximately 24 per cent to 33 per cent of the premium for most policyholders, with Australians aged 65 and over currently receiving a higher percentage. Higher-income earners receive a lower rebate or none at all, depending on their income tier.
The bill would remove the age-based difference: the rebate percentage and calculation method for people aged 65 years and over would become the same as those applying to people under 65. The rebate remains a significant budget item, costing the Commonwealth several billion dollars annually. According to the Parliamentary Budget Office and Australian Prudential Regulation Authority data, approximately 11 to 12 million Australians hold some form of private health insurance, with many receiving the rebate.
Evidence review
Committee referral and scrutiny
A notable feature of this bill is that it has attracted parliamentary scrutiny even though it remains before the House of Representatives. On 25 June 2026 — the same day it was introduced — the bill was referred to the Senate Community Affairs Legislation Committee for inquiry and report. The committee is due to report by 7 October 2026.
The Parliamentary Library has also prepared a Bills Digest for this legislation, dated 6 July 2026. A Bills Digest provides an independent analysis of the bill's provisions, including background, policy context, and an assessment of its implications. The existence of a committee referral and a Bills Digest suggests the bill contains provisions of significant policy interest that warrant detailed parliamentary examination.
The referral to a Senate committee before the bill has passed the House of Representatives is an established procedure that allows senators to begin their scrutiny work concurrently with the House's consideration of the bill. It does not indicate anything about the bill's prospects of passage.
Evidence review
Minister's second reading speech
Minister Mark Butler delivered the second reading speech on 25 June 2026. As the responsible minister for the Health, Disability and Ageing portfolio, Minister Butler outlined the government's rationale for modernising the private health insurance rebate, including the problems with the current arrangements that the bill is designed to address.
The bill's explanatory memorandum, tabled alongside the bill, provides the detailed legislative explanation of each provision. Interested parties — including private health insurers, consumer groups, and health policy experts — use these documents to form their views on the bill's merits.
Evidence review
Who would be affected
If enacted, the bill would affect Australians aged 65 and over who hold private health insurance, because the rebate percentage and calculation method for that group would become the same as for people under 65. It would also affect the private health insurance industry, and changes to the rebate framework could have implications for premium affordability and the uptake of private health insurance.
Private health insurers would need to adjust their systems and processes to comply with any new rebate arrangements. The Department of Health and Aged Care and the Australian Taxation Office (which administers the rebate as a tax offset) would also need to implement any new administrative arrangements.
Evidence review
What happens next
The bill awaits second reading debate in the House of Representatives and is listed as before the House as of 10 August 2026. Simultaneously, the Senate Community Affairs Legislation Committee is conducting its inquiry, which will involve receiving submissions from stakeholders and holding public hearings. The committee's report, due by 7 October 2026, could influence the parliamentary debate and any amendments that might be proposed.
Given the committee reporting date is in October, the bill may not complete its passage before the committee's work is concluded, unless the government prioritises the bill in the next parliamentary sitting period. The bill must pass both houses in identical form and receive Royal Assent before becoming law.
Common questions
Before you rely on the answer
When was this bill introduced and by whom?
The bill was introduced in the House of Representatives on 25 June 2026 by the Minister for Health and Aged Care, Mark Butler MP. The second reading was moved on the same day.
Has the bill been referred to a committee?
Yes. On 25 June 2026, the bill was referred to the Senate Community Affairs Legislation Committee, which is due to report by 7 October 2026. A Bills Digest dated 6 July 2026 has also been prepared by the Parliamentary Library.
Would the bill change how much rebate I receive?
The bill's stated effect, according to the official summary, is that the private health insurance rebate percentage and calculation method for people aged 65 years and over would become the same as those applying to people under 65 years of age. The exact impact on any individual depends on their age, income tier and premium, as set out in the bill's provisions.
Is this bill now law?
No. The bill remains before the House of Representatives as of 10 August 2026 and has not yet been debated. It must pass both houses of Parliament and receive Royal Assent before becoming law.
Source spine
Primary material used for this guide
- Bill homepage — Parliament of Australia — official record — checked 2026-08-11
- Bill — official record — checked 2026-08-11
- Explanatory Memorandum — official record — checked 2026-08-11
- Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 — Bills Digest — official record — checked 2026-08-11
Review trigger: Official summary published on the Parliament bill page (changed_field: official_summary); re-verified against the live APH page on 2026-08-11. Parliamentary status re-checked on 2026-08-11 (unchanged: Before House of Representatives). Review when the bill status, committee report or official summary changes.
Archive note: Official summary incorporated on 2026-08-07. Based on the bill as introduced on 25 June 2026 and the Parliament's current bill record. The bill's status and provisions may change as it progresses through Parliament and the committee inquiry process.
Primary links are provided without affiliate or tracking parameters. Confirm that the source still applies to the bill, sitting date, jurisdiction or reporting period before relying on it.