Labor Defends Senior Health Cover Cuts, Says Policy Built During China Cash Surge

The opposition argues it could push 40,000 to 90,000 off private health cover onto the public system.

Australian Health Minister Mark Butler speaks to the media at Parliament House in Canberra, Australia on Feb. 3, 2026. Hilary Wardhaugh/Getty Images

The health minister is defending Labor’s plan to strip higher private health insurance rebates from older Australians, arguing the policy was born in an era of Chinese-fuelled budget surpluses.

The decision to give a higher rebate to over-65s was introduced during the Howard government era to encourage more individuals to take up private health and free up the public system.