Independent Senator Nick Xenophon is refusing to support the Federal Government’s proposed changes to private health insurance.
The Government plans to cut the Medicare rebate for wealthier taxpayers and hit them with a higher Medicare levy surcharge if they choose not to take out private heath insurance. The measure will be debated in the Senate this week and has already received strong opposition from Xenophon.
Xenophon claims the Government is making a “fundamental mistake” and won’t support the rebate until he gets the results of a Productivity Commission report into the matter in a few months.
Under the draft laws, singles earning more than $75,000 and couples earning more than $150,000 will be affected by the new three-tier system, based on a combination of income and age.
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