The cost of private health insurance is set to jump with the government poised to secure the passage of legislation to means test the 30 per cent private health rebate.
It is understood the government has secured the three crossbench votes necessary to pass the legislation through the House of Representatives.
The means test is worth $2.4 billion to the budget over the next three financial years and will drive up the cost of premiums for high income earners.
The rebate will be phased out starting with singles on incomes of $83,000 and families on $166,000.
It will disappear altogether for singles earning $129,000 and couples earning more than $258,000.
The opposition will portray the passage of the bill as a broken promise given the then-Labor leader, Kevin Rudd, promised before the 2007 election not to touch the rebate, which was introduced by the Howard government in its second term.
The passage of the rebate has been made possible by the defection of Peter Slipper from the Liberal Party to the Speakers' chair.
This meant Labor needed just three crossbench votes instead of four. It already had the support of the Greens MP Adam Bandt.
It is believed independents Rob Oakeshott and Andrew Wilkie, who announced in July he supported the means test before backing away, are also on board.
The final vote in the lower house is expected next week.
Email a friend