People aged 65 and over will no longer get a higher private health insurance rebate. From 1 April 2027, their rebate will be the same as for people under 65.

Private health insurance rebates will now be based only on income. For those in the Base Tier (singles earning under $105,000 or families under $210,000), the rebate is a flat 25%. For those in Tier 1 (singles earning $105,001-$123,000 or families $210,001-$246,000), the rebate is a flat 10%.

People in Tier 2 (singles earning $123,001-$164,000 or families $246,001-$328,000) will no longer receive a private health insurance rebate.

A person can no longer keep a higher rebate if they were on the same policy as an older person who is no longer covered.

The Health Minister must adjust rebate rates on 1 April 2028 and in following years. These adjustments will be based on the difference between the Consumer Price Index and the average premium increase in the industry.

The law that prevents age discrimination will no longer have an exemption for the old age-based health insurance rebate rules, as those rules are being removed.