Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

In answer to Senator Cormann’s question on how many people will be affected by the changes to private health insurance in the budget, I can provide the following clarifying remark. Around 1.7 million adults, or around 10 per cent of the adult population, with income above the surcharge threshold will be affected by the changes. This is made up of around 1.6 million adults—that is, 630,000 singles and 490,000 families—who will receive a reduced rebate and therefore pay a higher net premium. Around 130,000 adults will be liable for an increased surcharge. And even following reforms to policies supporting private health insurance, based on average premiums, affected individuals will remain better off as a result of the tax cuts coming into effect in July 2009 and 2010.