Labor Government Abandoned “working families” with unfair means testing of health rebate

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The Rudd Government’s proposal to means-test the 30% private health insurance rebate without taking into account the number of children in the household is inconsistent with its other policies, Family First Leader Senator Steve Fielding said today.

“The Government’s decision to means-test the health rebate is unfair because it looks only at household or individual income and doesn’t take into account how many children there are in the household.

“This policy is inconsistent with the means-testing provisions set out in the Family Tax Benefit Part A, Child Care Benefit and Youth Allowance parental income test where the maximum income thresholds increase for each additional child.

“As any Australian parent knows, the costs on families can increase significantly depending on the number of children to be cared for.

“Under the Government’s proposal, a couple with no children on $149,000 will be eligible for the full rebate, while a family of 5 with a household income of $150,000 would have their rebate reduced. This makes no sense and undermines the family.

“Many families are already struggling to pay their bills and this move will make things even tougher for them.

“I would have serious reservations about supporting this policy unless the thresholds were lifted to take into account the number of children in the household.

“The Rudd Government wants to get this policy through the Senate quickly, but is reluctant to make changes that would look after their so called “working families” who voted them into office. At this stage, I am yet to be won over.

Courteousy  of  Senator Fielding