Fairer Private Health Insurance Incentives Bill 2011 and related bills

The majority voted against a motion introduced by Liberal MP Tony Abbott, which means that it was unsuccessful.

The motion was to amend the original motion "That this bill be now read a second time" with the following: "That all words after 'That' be omitted with a view to substituting the following words: 'this bill, and the related bills, not be proceeded with until after the Parliament has met in the 44th Parliament.'" In other words, Mr Abbott wanted to delay consideration of these bills until after the next election.

Background to the bills

The Fairer Private Health Insurance Incentives Bill 2012 was introduced along with the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012. These bills were introduced as a package to reduce the private health insurance rebate and increase the Medicare levy surcharge for certain taxpayers. To this end, the bills:

• create three private health insurance tiers with different levels of private health insurance rebate to reduce the amount of rebate eligible taxpayers with complying private health insurance are entitled to when their income for surcharge purposes is above the relevant Medicare levy surcharge threshold;(Read more about the Fairer Private Health Insurance Incentives Bill 2012 in its bills digest.

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• increase the rate of Medicare levy surcharge for certain taxpayers who do not have complying health insurance and whose income for surcharge purposes is above the relevant Medicare levy surcharge threshold;(Read more about the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012 in its bills digest.

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• increase the rate of Medicare levy surcharge for taxpayers who do not have complying health insurance and whose income (including reportable fringe benefits) for surcharge purposes is above the relevant Medicare levy surcharge threshold.(Read more about the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012 in its bills digest.)