According to the deal arranged, more low-income earners will be given incentives for health insurance whereas the wealthy will be made to pay more for their health insurance. Greens have agreed to the means test on condition that the government will allocate $165 billion to dental health.
The government still needs approval for the legislation to be passed. However, Tanya Plibersek, health minister is positive that it will take no time to get the bill approved.
She gave a statement, “It means that low-income Australians won’t be subsidizing the private health insurance rebates of much higher-paid Australians. I’m going to let the other crossbenchers speak for themselves, but what I can say is that I feel confident that this legislation will now pass in an unamended form.”
Rob Oakeshott and Andrew Wilkie, independent members of the House of Representatives have announced to support the bill. The bill is giving the government approximately $2 billion spare which it can use to clear the deficit.
According to Tanya, the bill means that the individuals earning $50,000 per year will no more be paying for the health insurance of the households earning $250,000 per year. It will increase the price of health insurance for families earning $166,000 annually; however, families with an annual income of $258,000 or above will lose the subsidy completely.
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