Labor faces $1.6 billion budget hit as Greens demand pensioner protection
The Australian Labor government faces a $1.6 billion budget shortfall as the Greens block legislation to remove private health insurance rebates for over-65s. The government intended to redirect these funds to aged care, but the bill currently lacks the necessary support in the Senate.
Why it matters
The impasse highlights the difficulty of passing fiscal reforms in a minority government and directly impacts the funding of aged care services.
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Share A A A Labor could be forced to forfeit up to $1.6 billion in budget spending that had been earmarked for aged care to land a compromise deal on its contentious private health insurance changes.
The Greens doubled down on their rejection of Health Minister Mark Butler’s bill on Thursday, saying they would not pass laws scrapping the Howard-era private health insurance bonuses for over-65s unless pensioners were ringfenced from the changes.
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