Australia’s latest federal budget includes several major measures affecting older Australians, with changes to private health insurance rebates, cheaper medicines, aged care funding, and housing tax reforms among the key highlights.
One of the biggest changes is the government’s decision to remove age-based private health insurance rebate benefits from April 1, 2027. Under the new system, Australians over 65 will no longer receive higher rebate rates, meaning many seniors could pay hundreds of dollars more each year for private health insurance.
Currently, Australians aged 65 to 69 receive a 28 per cent rebate on premiums, while those over 70 receive 32 per cent. Under the revised policy, all adults will receive the same 24 per cent rebate regardless of age. Health Minister Mark Butler said the move is aimed at improving “intergenerational equity.”
The budget also includes significant healthcare support measures. The government has allocated $5.9 billion for new and updated listings under the Pharmaceutical Benefits Scheme (PBS), covering treatments for conditions including cancer, chronic kidney disease, and cystic fibrosis.
In addition, the maximum general PBS co-payment will be reduced to $25, lowering medicine costs for Australians. The government will also provide funding to make the RSV vaccine Arexvy free for eligible groups, including people aged over 75, under the National Immunisation Program. Subsidies for COVID-19 oral antiviral medicines will also continue permanently.
The budget further outlines major aged care investments, with $3.7 billion allocated to improve services and expand aged care infrastructure. This includes funding to support the construction of 5,000 aged care beds annually and additional financial support for aged care providers expanding residential facilities.
Extra funding has also been allocated to improve safety and quality standards in aged care and to expand Support at Home packages, including fully subsidised personal care services such as showering assistance.
Housing and tax reforms announced in the budget could also affect older Australians who own investment properties. The government plans to limit negative gearing benefits to newly built properties only and introduce changes to capital gains tax rules from July 2027. Existing investment properties owned before the announcement will remain exempt from the changes.
Treasurer Jim Chalmers acknowledged that some of the measures would be controversial but said the reforms were designed to create a fairer economic system across generations.
