Gillard to reintroduce legislation for private health insurance rebate cuts

JULIA Gillard has confirmed she will press ahead with plans to tighten eligibility for taxpayer-funded private health insurance rebates in the May budget.

JULIA Gillard has confirmed she will press ahead with plans to tighten eligibility for taxpayer-funded private health insurance rebates in the May 10 budget despite Tony Abbott's promise that the Coalition will attempt to block the move.

The Prime Minister told The Australian Online reducing thresholds on eligibility for the 30 per cent rebate, first proposed in the 2009-10 budget but blocked in the Senate, remained "an important policy" of her government.

"The legislation is expected to be reintroduced after the budget," a spokeswoman said on behalf of Ms Gillard this morning.

In the 2009-10 budget, the 30 per cent rebate was to start to be reduced for singles earning more than $80,000 a year and couples earning more than $160,000 a year in a move that would have saved $1.9 billion over four years.

But the hostile Senate rejected the push, with the Coalition insisting the cuts were unfair to families.

Yesterday the Opposition leader told The Australian his policy had not changed on the issue.

Mr Abbott's comments set up a fresh battle in the House of Representatives, with Labor needing the support of independents to pass the measure.

However, it is unlikely to be blocked again in the Senate. This is because the Greens, who assume the balance of power in the Senate on July 1, support the move.