New Medicare bill rushed into parliament

(AAP) - The federal government has rushed new legislation into parliament in a bid to save its planned changes to the Medicare levy surcharge.

The Senate voted down the government's original bill on Wednesday when key
balance-of-power senator, Family First's Steve Fielding, sided with the coalition.
That bill aimed to increase the income threshold - from $50,000 to $100,000 for
singles and from $100,000 to $150,000 for couples - at which taxpayers without
private health insurance must pay a one per cent surcharge on top of the Medicare
levy.
A new bill, which was introduced to the lower house on Thursday, provides for a
singles threshold of $75,000, a concession to the original legislation already
announced by the government.
Senator Fielding's decision to vote down the bill at the second reading stage meant
no amendments could considered by the Senate.
He is insisting on compensation for low-income earners, especially the elderly, who
are tipped to be hit with higher private health insurance premiums following an
exodus from the system.
Treasury estimates show up to 583,000 people will dump their private health cover if
the thresholds are increased, forcing up premiums for those who remain insured.
Health Minister Nicola Roxon was coy when questioned about how much ground the
government was prepared to give to Senator Fielding in return for his support.
Instead, she put the pressure on the coalition, saying it had a responsibility in
the Senate.
"Their actions do give more power to the minor parties and if sensible compromises
are reached that it is an opportunity for the Liberal Party to be able to support
those changes," she told reporters.
Ms Roxon said this was Opposition Leader Malcolm Turnbull's big chance to show
Australians he really knew what it was like to struggle.
"Yesterday the Leader of the Opposition (Malcolm Turnbull) denied 330,000 tax cuts
worth up to $1,500," she told parliament.
"Does he think people on $50,000 deserve a tax cut or not?"
Mr Turnbull said the coalition would continue to oppose changes to the surcharge.
"Our position is very, very clear, we believe that this is just a money grab by the
government," he told ABC Radio.
"This will make the government, in net terms, about $360 million over the next four
years.
"So don't think this is the government giving something up.
"Yes, they lose some tax revenue but they claw back a lot of private health
insurance rebate contributions."
Independent senator Nick Xenophon, who with the Greens supported the government in
the Senate, says he will continue to push for a singles threshold of $69,000.
That figure represents the original threshold indexed for inflation since 1997, when
the surcharge was introduced by the Howard government.
"This is feeling a bit like groundhog day, we'll have to do the whole thing over and
over again," he told reporters.
Opposition health spokesman Peter Dutton said the measure will force more people
onto public hospital waiting lists.
"It's unbelievable that a health minister could believe that they could put forward
a bill which would drive up the premiums on private health insurance, drive up to
one million people out of private health insurance onto public hospital queues," he
told reporters.