JOINT MEDIA RELEASE

Senator Anne Ruston
Shadow Minister for Health and Aged Care
Senator for South Australia

Dr Anne Webster MP
Shadow Minister for Regional Health
Shadow Minister for Regional Communications
Federal Member for Mallee

Labor's budget will reduce access to essential healthcare

Thursday 14 May 2026

The Albanese Government’s Budget has confirmed a harmful new tax on older Australians with private health insurance while failing to bolster the aged care system, increasing pressure on Australia’s struggling hospital system.

At the same time Labor has announced an additional sneaky $2.7 billion cut on health and aged care services.

Shadow Minister for Health and Aged Care Senator Anne Ruston said that the Budget makes it clear Anthony Albanese was making older Australians pay for Labor’s budget mess.

“Older Australians will be forced to pay up to $1,600 more for their private health insurance as a result of Labor’s decision to cut the rebate for over-65s, pushing more Australians into the already overstretched public health system,” Senator Ruston said.

“The Coalition continues to call on the Government to immediately reconsider this damaging policy, which will hurt older Australians, increase pressure on taxpayers and further strain Australia's public hospital system.

“At the very same time, Labor is choking hospitals from the other end by failing to provide adequate aged care support, leaving older Australians stuck in hospital beds because the care they need simply is not there.

“Despite more than 234,000 older Australians currently stuck waiting for support, Labor has failed to provide a clear guarantee for any new home care packages in this Budget. It almost beggars’ belief.”

Shadow Minister for Regional Health Dr Anne Webster MP said that Labor's approach to the wait list crisis was built on tragedy.

“Without new packages, the only way the wait list will come down is by banking on older Australians either moving into residential care or dying. We know tragically 5,000 have already died waiting,” Dr Webster said.

Meanwhile, the Albanese Government used the cover of Budget Day to release new data showing the wait time for a home care package has now blown out to 12 months on average.

“Anthony Albanese promised older Australians that no older Australian would be worse off yet hundreds of thousands of older Australians remain trapped waiting for home care with no hope in sight,” Senator Ruston said.

The Budget also fails to address the growing aged care bed shortage caused by Labor’s cut to residential aged care funding in the 2023-24 Budget funding only 5,000 new aged care beds a year despite demand requiring at least 10,000 annually.

“This Government is delivering only half the aged care beds Australia needs, leaving vulnerable older Australians without care and placing even more pressure on hospitals and families,” Senator Ruston said.

The Government has also driven up out-of-pocket healthcare costs for families by capping the Extended Medicare Safety Net for a range of Medicare services and cutting Medicare rebates for children and adolescents with sleeping disorders.

“This is the same Government that ran a disgraceful Mediscare campaign and is now ripping $2.7 billion out of health, disability and ageing programs, cutting almost $79 million in Medicare support for families, and hitting older Australians with a $1 billion a year blow to private health insurance rebates,” Senator Ruston said.

“So much for Labor’s promise that all you need is your Medicare card. Under Labor, Australians will be paying more, waiting longer and finding it even harder to access the healthcare they need.”

Dr Webster said that Labor's budget holds back and leaves behind regional Australians.

"Providers and workforce are thinner on the ground and hospitals are smaller in regional Australia, meaning Labor's neglect is felt significantly and inequitably in the regions.

"For instance, Labor has failed to fund for the National Health Reform Agreement’s Schedule F: Better Health Equity for Rural and Remote Communities, despite it being due to take effect 1 July 2026.  

"This government talks about 'equity' but fails to fund a specific equity measure for rural and remote Australians. Regional Australians deserve better than this woeful Budget."

‍

ENDS

‍

‍