The majority voted in favour of a motion that schedule 1 stand as printed, which means that the schedule will remain unchanged. The motion was put in response to a motion introduced by Liberal Senator Concetta Fierravanti-Wells that the schedule be opposed.

Schedule 1 is the part of the bill that is intended to remove the private health insurance rebate from the Lifetime Health Cover ('LHC') loading component of affected private health insurance premiums.

The LHC is a financial penalty on those who delay taking out private health insurance in the form of a two per cent loading on their premium for each year after their 31st birthday they delay purchasing cover. Currently, people with an LHC loading receive the private health insurance rebate on the total cost of their premium (i.e. the premium plus any LHC loading). Schedule 1 seeks to change this so that people with an LHC loading only receive the rebate to the cost of their premium, not including the LHC loading.(More information about the LHC loading and the effect of this bill is available in its bills digest. )

Background of the bill

As well as removing the private health insurance rebate from the Lifetime Health Cover loading component of affected private health insurance premiums, the bill was also introduced to end the Incentive Payments Scheme which allows people to claim the rebate as a direct payment.

Currently there are three ways that people can claim the private health insurance rebate: (1) through the Premiums Reduction Scheme, which is an upfront discount on the premium offered by the health insurer; (2) as a tax offset claimed through the Australian Taxation Office; (3) through the Incentive Payment Scheme, which is a direct payment from a Medicare office. This bill would remove the latter option.(Read more about the Incentive Payments Scheme and the bill generally in its bills digest.)

Votes Passed by a small majority

Nobody rebelled against their party.

Party Votes
Australian Greens (100% turnout) 9 Yes 0 No
Richard Di Natale Victoria Yes
Sarah Hanson-Young SA Yes
Scott Ludlam WA Yes
Christine Milne Tasmania Yes
Lee Rhiannon NSW Yes
Rachel Siewert WA Yes
Larissa Waters Queensland Yes
Peter Whish-Wilson Tasmania Yes
Penny Wright SA Yes
Australian Labor Party (80% turnout) 24 Yes 0 No
Catryna Bilyk Tasmania Yes
Mark Bishop WA Yes
Carol Brown Tasmania Yes
Kim Carr Victoria Yes
Jacinta Collins Victoria Yes
Trish Crossin NT Yes
Don Farrell SA Yes
David Feeney Victoria Yes
Mark Furner Queensland Yes
Alex Gallacher SA Yes
Sue Lines WA Yes
Kate Lundy ACT Yes
Gavin Marshall Victoria Yes
Anne McEwen SA Yes
Jan McLucas Queensland Yes
Claire Moore Queensland Yes
Helen Polley Tasmania Yes
Louise Pratt WA Yes
Lisa Singh Tasmania Yes
Ursula Stephens NSW Yes
Glenn Sterle WA Yes
Matt Thistlethwaite NSW Yes
Lin Thorp Tasmania Yes
Anne Urquhart Tasmania Yes
Doug Cameron NSW Absent
Bob Carr NSW Absent
Stephen Conroy Victoria Absent
John Faulkner NSW Absent
Joe Ludwig Queensland Absent
Penny Wong SA Absent
Nigel Scullion NT Country Liberal Party Absent
John Madigan Victoria Democratic Labor Party No
Stephen Parry Tasmania Deputy President No
Nick Xenophon SA Independent No
Liberal Party (85% turnout) 0 Yes 23 No
Christopher Back WA No
Simon Birmingham SA No
Sue Boyce Queensland No
George Brandis Queensland No
David Bushby Tasmania No
Michaelia Cash WA No
Richard Colbeck Tasmania No
Sean Edwards SA No
Alan Eggleston WA No
David Fawcett SA No
Concetta Fierravanti-Wells NSW No
Mitch Fifield Victoria No
Gary Humphries ACT No
David Johnston WA No
Helen Kroger Victoria No
Ian Macdonald Queensland No
Brett Mason Queensland No
Marise Payne NSW No
Michael Ronaldson Victoria No
Anne Ruston SA No
Scott Ryan Victoria No
Arthur Sinodinos NSW No
Dean Smith WA No
Eric Abetz Tasmania Absent
Cory Bernardi SA Absent
Mathias Cormann WA Absent
Bill Heffernan NSW Absent
National Party (80% turnout) 0 Yes 4 No
Barnaby Joyce Queensland No
Bridget McKenzie Victoria No
Fiona Nash NSW No
John Williams NSW No
Ron Boswell Queensland Absent
John Hogg Queensland President Yes
Totals (84% turnout) 34 Yes – 30 No