Angie Bell (Moncrieff, Liberal National Party) Share this | Hansard source

I'm pleased to rise and speak of the Private Health Insurance Amendment (Income Thresholds) Bill 2021. The twin health and economic crisis of this pandemic has underscored how intertwined the different aspects of wellbeing are, and I would like to say to the Australian people that this bill—and I agree with the member for Sturt on this—will take pressure off the public system, which is what those opposite should be positive about, that we will help those who rely on the public system instead of those who can't afford health care or private health care not being able to go to public hospitals. So I think it's really important that this bill does move forward through the parliament. This is nothing new, and, after the pandemic, the reality of the critical interdependence on health and economic wellbeing will remain.

In Australia, we have a health system that many around the world are envious of. In the words of John Howard, 'It's half public and half private, just like the school system.' It's half public and half private, which makes it equitable for all Australians to have good health care and good education.

In Moncrieff, dedicated health professionals deliver highly effective care across our public and private hospitals and through many other health services. Globally significant health research is taking place in our universities. Griffith University, my alma mater, in my electorate of Moncrieff, is going forward in leaps and bounds when it comes to medical research. None of this happened by accident. It was not a revolution. It was logical, incremental improvements that delivered most of what we see today, due in part to the work of many governments both on this side and the other side and, more so, due to the many public and private institutions that have been pushing on the flywheel.

The institutional strength of our Australian society should be cause for celebration. I've said before, we have the best health system in the world. Very little of the lucky country's circumstances—in this case, Australia—is down to luck; it's down to hard work. The harder you work, the luckier you get. This institutional strength is one of the great differentiators that our nation must recognise and nourish. Our national institutional strength not only flourishes in the health sector but in most other major endeavours of our society. This gives me great confidence that if we, as a government, pursue good policies and implement them with vigour, we will create conditions for the expertise and toil of our institutions to deliver excellent comes for the Australian people.

The task of reform is never over; there's always more work to be done. Each and every incremental reform is important; therefore, I'm pleased to contribute to this debate on the Private Health Insurance Amendment (Income Thresholds) Bill 2021. The bill amends the Private Health Insurance Act 2007, the PHI act. The changes planned will commence on 1 July this year, which is very shortly, creeping up to the end of the financial year. It's been a very quick year, this year, and here we are almost half way through it—unbelievable.

Private health insurance is a complicated policy area, and the government is taking a considered approach with this bill. It extends the indexation pause on the Medicare levy surcharge and private health insurance rebate income tiers for another two years until 30 June 2023. It ensures the recommencement of annual indexation of the current income thresholds following the end of the planned pause. The pause is important because it rightly provides the stability of incentives that private health insurance consumers and stakeholders deserve, whilst the careful consideration of longer-term settings is undertaken. We must be cognisant that private health insurance policies have significant consequences for the public system. As I said, they relieve the strain on the public health system, on public hospitals, so that all Australians can access good health care. It's equitable. Those who can afford it, buy private health insurance and those who can't go to public hospitals. That's worked in our democracy here in Australia for very, very many decades. A detailed study into the effectiveness of private health insurance settings will be undertaken, of course, during this pause.

To be clear, this bill ensures the security of private health insurance in two main ways. It continues to encourage high-income earners to contribute to their own healthcare costs through private insurance or have a contribution imposed via the Medicare levy surcharge, and it continues to incentivise consumers to purchase and maintain private health insurance cover, which is very important.

An important component of this bill is the indexation arrangements. The private health insurance rebate amounts, income thresholds and the rates for the Medicare levy surcharge are pursuant to the Private Health Insurance Act 2007. The act determines the setting and annual indexation of income thresholds. The Medicare levy surcharge is paid by Australian taxpayers earning more than $90,000 for singles and more than $180,000 for a family, unless they have an appropriate level of private health insurance hospital cover. This bill will deliver a pause for a further two years from 1 July 2021, in a couple of months, allowing for indexation to recommence annually from 1 July 2023.

The Private Health Insurance Act specifies the three private health insurance income thresholds for singles and for families. Annual indexation of those thresholds is deployed in the act by utilising an indexation factor. The bill amends the income thresholds so the current 2021 levels also apply for 2021-22 and 2022-23. I will just outline the three threshold levels. Currently they're at $90,000, $105,000 and $140,000. For families, the three levels are $180,000, $210,000, and $280,000. Additionally, it specifies the indexation factor to apply indexation across the income thresholds each financial year from July 2023. At that time, when indexation resumes, it will be determined by the method under the act, and I'll outline that. The annual indexation is determined by changes in average weekly ordinary-time earnings each financial year from 1 July 2023. Average weekly ordinary time earnings are an Australian Bureau of Statistics, or ABS, measure of earnings by Australians for an ordinary time worked each week. It's publicly reported quarterly by the ABS.

The Medicare levy surcharge rates and the private health insurance rebate rates remain unchanged by this bill. The pause extension means $90,000 remains the base income threshold for singles and $180,000 remains the base rate for a family for two more years, until 30 June 2023. This bill helps to restrain expenditure growth of the private health insurance rebate while a detailed study into the effectiveness of the operation of the tiers and incentives is undertaken. This pause, or freeze, if you like, provides stability whilst careful study of these important incentives is undertaken to ensure those good policy outcomes that Australians deserve.

In the health portfolio more generally, the budget is delivering for Australians. Let me take the time to highlight just a couple of important facts. There is record investment of $121.4 billion in 2021-22, and $503 billion is being invested over the next four years. We've committed over $25 billion towards our COVID-19 health response since the beginning of this pandemic. That $25 billion includes $1.1 billion to extend our COVID-19 health response to support Australians throughout the pandemic and $1.9 billion for the vaccine rollout. The $204.6 million to extend the telehealth arrangements until 31 December this year raises the government's total investment to $3.6 billion.

There is $17.7 billion being invested in aged care—those opposite should be happy with that also—in response to the royal commission on aged-care quality. Our $2.3 billion investment in the National Mental Health and Suicide Prevention Plan is so important for those Australians who need help after they've tried to take their lives. It is very important that they are supported after doing so. That is very important. Medicare funding is $125.7 billion over the forward estimates, up by over $6 billion. The PBS is $43 billion over four years. There is $535.9 million for the National Women's Health Strategy 2020 to 2030. These are all very important strategies and investments in the Australian people—in the health and wellbeing of all Australians. There is $781.1 million to prioritise Aboriginal and Torres Strait Islander health and ageing outcomes. Public hospitals will receive $135.4 billion over five years. There is $6.7 billion over four years for research, and $228.1 million of that will be new grants and the opening of programs in this budget.

With this bill and the other steps we've taken on private health, the government are delivering the lowest premium changes in 20 years. The Morrison government cares about the health of all Australians. We're doing everything we can to support Australians—to support those who need to go to public hospitals through this pause to the private health indexation.

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