The Australian Government has proposed removing the higher private health insurance rebate for Australians aged 65 and over. If Parliament passes the change, it will start on 1 April 2027. Members aged 65 and over would receive a smaller rebate, which means paying more for the same cover. This  change is not law yet. Latrobe Health Services will update this page as the bill moves through Parliament, so you can always see where things stand.

Status as of Monday 7 September 2026: the bill is before the Senate Committee. Your Latrobe Health Services cover remains unchanged.

Got questions about your cover? Let's look at it together. Speak with one of our Victorian-based team members about your cover options and find the right fit for you. Call us on 1300 362 144.

Where is the change up to right now?

As at Monday 7 September 2026, the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 is before the Senate Commitee. It has not passed the House of Representatives or the Senate. Until it does, your rebate and your premium stay exactly as they are.

What is the private health insurance rebate?

The private health insurance rebate is an Australian Government contribution towards the cost of your health cover. Most people take it as a reduction on their premium, others claim it back at tax time. Today, the rebate you receive depends on two things: your income and your age. Australians aged 65 and over currently receive a higher rebate than people under 65 on the same income, and the rate goes up again at 70.

Singles	≤$105,000	$105,001-123,000	$123,001-164,000	≥$164,001
Families	≤$210,000	$210,001-246,000	$246,001-328,000	≥$328,001
	Base tier	Tier 1	Tier 2	Tier 3
Age under 65	24.118%	16.079%	8.038%	0%
Age 65-69	28.139%	20.098%	12.058%	0%
Age 70+	32.158%	24.118%	16.079%	0%

PHI rebate to 31 March 2027

What is the Australian Government proposing to change?

The Australian Government is proposing to remove the age-based part of the rebate. Under the bill, your rebate would be based solely on your income alone. Someone aged 65 and over would receive the same rebate as someone under 65 on the same income.

The rebate would not disappear. Australians aged 65 and over would still receive a rebate, however it would no longer increase based on age and would instead be determined by income alone. The Australian Government has said the savings would be redirected into aged care.

Who do the private health insurance rebate changes affect?

The change would affect Australians aged 65 and over who hold private health insurance and currently receive the higher age-based rebate. More than three million older Australians are in that group. People under 65 would not have their rebate changed by this bill.

Older Australians on lower incomes and pensions are the ones with less capacity to absorb increases in the cost of maintaining their private health insurance cover.

What could the change mean for your premium?

If the change passes, members aged 65 and over would receive a smaller rebate, so more of the premium would be left for you to pay. How much more depends on your age and your income.

Your age	What happens to your rebate	Estimated impact on what you pay
Under 65	No change proposed	No change from this bill
65 to 69	Falls by around four percentage points	Around 6% more for the same cover
70 and over	Falls by around eight percentage points	Around 12% more for the same cover

Those percentages look bigger than the rebate cut, and there's a reason for that. The increase applies to what you actually pay after the rebate comes off, not to the full premium.

What you pay depends on:

• your age
• your income tier
• the cover you hold
• whether you take the rebate off your premium or claim it at tax time
• any separate premium change that applies in 2027.

Where does Latrobe Health Services stand?

Latrobe Health Services supports a fairer, better targeted rebate. We support investment in aged care too, because it's overdue and it's needed. What we don't support is older Australians on lower incomes and pensions carrying the cost of it. There's a fairer way to fund aged care, and that's the case we're making.

Latrobe Health Services has made a formal submission to the Senate Community Affairs Legislation Committee. We're not-for-profit and member-owned, so we answer to our members rather than shareholders. That's who we spoke for.

Regional Australians would feel this most. In general, they are older, have higher rates of long-term health conditions, lower average incomes, and fewer options if private cover stops being affordable.

We're committed to:

• keeping members informed as the bill moves
• explaining what we know, and what we don't
• supporting members through the change if it happens
• raising member concerns wherever we can.

What happens next?

The Senate Community Affairs Legislation Committee is due to report by Wednesday 7 October 2026. Parliament then decides whether to pass the bill. Here's the timeline as we understand it.

When	What happens
Friday 21 August 2026	Submissions to the Senate inquiry closed. Latrobe Health Services made a submission
September 2026	Senate committee hearings
Wednesday 7 October 2026	Senate committee report due
Late 2026	Parliament debates and votes. Dates are not yet confirmed
1 April 2027	Proposed start date, if the bill passes

We'll update this page and let affected members know as things become clearer.

Do you need to do anything now?

No. You don't need to change anything today. The bill isn't law, and if it passes it wouldn't start until 1 April 2027. Your Latrobe Health cover works exactly as it did yesterday.

If you'd like the reassurance of checking, our team can go through your cover with you. A cover review doesn't mean changing anything (plenty of members come away keeping exactly what they had). It just means you've made an informed decision.

In a cover review, our team will go through what you're covered for, check it still suits you, answer your questions, and talk through ways to manage your premium if that's what you need. It's completing a cover review if:

• your health needs have changed
• your budget has changed
• you've held the same cover for a long time
• you're not sure what your policy includes.

To complete a cover review, call our team on 1300 362 144.

Want to have your say?

This is a decision for the Australian Parliament, so your federal Member of Parliament and your senators are the people who can act on it. You can find their details on the Parliament of Australia contact page for senators and members.

Common questions about the rebate changes

Is the change law yet?

No. As at Monday 7 September 2026, the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 has not passed the Australian Parliament. Nothing has changed for Latrobe Health members.

When would the change start?

The proposed start date is 1 April 2027. That date only applies if Parliament passes the bill.

Will my premium go up?

If the change passes, members aged 65 and over would receive a smaller private health insurance rebate, so the amount they pay for cover would go up. The exact impact depends on your age, your income tier and your level of cover. Premiums can also change for other reasons, separately from this bill.

What if I claim the rebate through my tax return?

You may still be affected. Instead of your monthly premium changing, you'd receive a smaller rebate when you lodge your tax return. Your accountant can help you understand how this might impact your tax return.

Does this affect people under 65?

The proposed bill changes the higher age-based rebate for people aged 65 and over, so it doesn't change the rebate for people under 65. However, health funds and industry groups have raised concerns that if older Australians drop or downgrade cover, it could place more pressure on the public health system, and that affects all Australians.

Will Latrobe Health tell me if I'm affected?

Yes. We will contact affected members as more information becomes available, and we'll keep updating this page in the meantime.

Is Latrobe Health opposing the change?

Yes. We support a fairer, better targeted rebate that protects older Australians on lower incomes and pensioners. We've made a formal submission to the Senate Community Affairs Legislation Committee, and we're focused on making sure the impact on members is understood before any decision is made.

Still have a question? Call us on 1300 362 144 and we'll tell you what we know.

This page is general information about a proposed change to Australian Government policy. It doesn't take your personal circumstances into account, and it isn't financial or tax advice. The private health insurance rebate is an Australian Government scheme with its own eligibility rules. Speak with our team, before making a decision about your cover.