Andrew Robb (Goldstein, Liberal Party, Minister for Trade and Investment) Share this | Hansard source

I appreciate the opportunity to sum up the Private Health Insurance Amendment Bill No. 1 2014. In doing so, I would like to thank all of the members for their contribution to this debate.

The purpose of the Private Health Insurance Amendment Bill No. 1 2014 is to implement a budget measure that pauses the income tiers for the Australian government rebate on private health insurance and the Medicare levy surcharge at the 2014-15 rates for three years. These amendments are being made to the Private Health Insurance Act 2007. It is important to note that these changes will not affect individuals with an income that remains $90,000 or below, or couples and families with an income that remains $180,000 or below. It is estimated that the changes will only impact four per cent of private health insurance policies.

These initiatives, along with many others over previous weeks and more to be presented, formed part of a most substantial budget in May this year. They were required because the coalition have inherited an enormous debt. These measures are just a small part of the government's strategy to clean up the mess left behind by the former Labor government. If we do not tackle these issues, if we do nothing and if we have no policy change at all in the years ahead, we would see what is now a $1 billion interest bill a month—$12 billion a year—grow in a short period of time to some $3 billion a month. That is $36 billion a year. Seventy per cent of all of our public debt is owed to foreign interests. In other words, we would be paying $36 billion a year back overseas and, as a consequence, we must clean up this mess. This bill is all about that.

In summary, this bill will amend the Private Health Insurance Act 2007 to pause the income threshold for the Australian government rebate on private health insurance and the Medicare levy surcharge at the 2014-15 rates for three years, and I put the bill to the House.

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