Alison Penfold
Lyne · National Party · Australia
“I rise to speak on the Universities Accord (Opening the Doors of Opportunity) Bill 2026. I acknowledge the member for Moore and his time he spent in the wonderful community of Dungog. It is a terrific place and I know that the teachers and educators in that town do a wonderful job. Well done.”
“They can often live with their families while they study. For a young person growing up in Dungog, Taree, Wingham, Gloucester, Harrington, Tea Gardens, Bulahdelah, Forster, Tuncurry or the Manning Valley or the many other small towns and hamlets in my electorate—”
“My question is to the Prime Minister. Isn't it true that the Albanese Labor government's 70c-a-day tax cut has already been eaten up by inflation, unlike the coalition's tax-back guarantee, which is protected from inflation and would provide a typical Australian worker a far bigger, $400 tax cut this year?”
“My question is to the Treasurer. Yesterday the Treasurer was asked about his plan to force thousands of widows and divorcees to pay more tax by removing their access to grandfathering for capital gains tax and negative gearing.”
“My question is to the Prime Minister. A new report shows the Prime Minister saved around $200,000 on the sale of three investment properties under existing capital gains tax rules. In last month's budget, the Prime Minister broke his promise and changed those rules.”
“My question is to the Prime Minister. A new report shows the Prime Minister saved around $200,000 on the sale of three investment properties under existing capital gains tax rules. In last month's budget, the Prime Minister broke his promise and changed those rules.”
The complete record
Every one of 616 lines we hold for Alison Penfold, in date order, each linked to its source. Free to read, in full, without an account. Page 5 of 13.
“It means ensuring the scheme is sustainable, fair and focused on those who need it most. And that is where this bill falls short. It acknowledges the problem, but it does not fully confront it. Where is the comprehensive plan to restore integrity? Where is the decisive action to crack down on systemic rorting? Where is the accountability for the failures that have allowed this to occur? This legislation could have gone further. It could have introduced real-time auditing and data matching, strengthened provider registration requirements, improved transparency around pricing and delivered faster enforcement to shut down dodgy operators. Instead, we have a bill that makes incremental changes in the face of a systemic challenge. If we're serious about protecting the NDIS, we must act with urgency.”
“Every dollar that is rorted is a dollar taken away from someone who genuinely needs support—a child requiring early intervention, a person with profound disability or a family relying on respite care. Recent findings of the ACCC highlight just how serious these issues are—false advertising, unfair contracts, charging for services not delivered and misleading claims about eligibility. This goes to the heart of integrity in the scheme. We on this side of the House strongly support the NDIS, and I believe it is universally supported. This is not a political issue. This is an issue about how we best serve and support people with disability in this country. We believe in it, we fought for it and we want to see it protected for generations to come. But supporting the NDIS does not mean defending the status quo.”
“Another raised concerns that participants are being signed up to services that they rarely use but are still charged for because, in their words, 'Free services will always be abused.' Perhaps most concerning are cases like that of Vanessa from Largs, who described deeply troubling behaviour by a provider: disputed invoices, lack of transparency and even legal action against a vulnerable participant. These are not theoretical or abstract concerns. These are issues that are happening now in my electorate, and this is what Australians are experiencing. And it's compounded by the scale of the problem. The NDIS is projected to cost around $46 billion this year and is growing at approximately 10 per cent annually. The rate of growth is simply not sustainable.”
“These are important steps, but they are not enough, because the reality is this: the NDIS has become a target for exploitation. Across communities like mine, constituents are raising serious issues and concerns. They're seeing providers charging exorbitant fees, billing for services not delivered and aggressively targeting vulnerable participants. One constituent told me of a provider boasting about pocketing thousands of dollars for basic outings, employing unqualified staff, charging the taxpayer heavily and exploiting the system.”
“I rise to speak on the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025. The NDIS is one of the most significant social reforms in our nation's history. It represents a solemn promise—that Australians living with disability will be supported with dignity, care and opportunity. But that promise is under pressure, and, unless we act decisively to restore integrity to the scheme, we risk undermining its long-term sustainability. This bill introduces a number of sensible measures. It strengthens penalties for wrongdoing, expands the powers of the NDIS Quality and Safeguards Commission, broadens banning orders, introduces antipromotion orders and improves information gathering to detect fraud.”
“That is what is at stake, and that is why, in the context of the Farrer by-election, this issue resonates so strongly. People are not asking for special treatment. They are asking for fairness. They are asking for transparency. They are asking for a government that understands that water policy is not just about environmental targets, it's about people. This bill is about restoring that balance. For those reasons, I commend the bill to the House.”
“If the government is confident in its approach, it should welcome that scrutiny. Scrutiny is not a threat; scrutiny is a safeguard. It's a safeguard for the farmers who rely on predictable water rules. It's a safeguard for the towns that depend on agriculture. And it's a safeguard for the environment itself, because good environmental outcomes depend on good governance. The explanatory memorandum says that this bill has no financial impact. But let's be honest: the real cost has already been paid. It's been paid for by communities that have seen water taken out of production without clear outcomes. It's been paid for by businesses that cannot plan for the future. And it's been paid for by families who are wondering whether their towns have a future at all.”
“When the Commonwealth holds and moves water, it should be subject to clear reporting, independent audit and strong scrutiny. It is also important that the commission is credible with commissioners that have the right mix of expertise and lived understanding of basin communities and river operations. It also means terms of reference that get to the heart of the issue and processes that give stakeholders confidence they will be heard. The government will say that there are already reviews underway—and, yes, there is a review fatigue in basin communities; communities are tired of being consulted without being heard—but this bill is different. It's not another broad bureaucratic exercise; it's a focused inquiry into one of the most powerful actors in the water system, the Commonwealth itself.”
“That is a core difference from a royal commission. The commission will examine the size and composition of the CEWH's holdings; how watering priorities are set; how decisions are implemented in practice; whether environmental outcomes are actually being achieved; the impacts on third parties, on farmers, irrigators, councils and communities; and the CEWH's trading behaviour and governance and accountability arrangements. These are not academic questions. They go to the heart of whether the Basin Plan is being implemented in a way that is fair, transparent and effective. Water uses comply with complex rules, metering and reporting because the community expects integrity in water management. That expectation must apply equally to the Commonwealth.”
“What people in Farrer are seeing is a government that keeps shifting the goalposts, a government that keeps expanding Commonwealth control over water and a government that talks about balance but delivers policies that hollow out irrigation communities and undermine confidence in the future. Businesses cannot plan; farmers cannot invest; families cannot make long-term decisions. Why? Because they do not trust that the rules will stay the same, and trust once lost is very hard to rebuild. That is why this bill is so important, because it does not just add another review; it establishes a targeted, agile and urgent independent commission of inquiry with real powers. It can compile documents. It can test evidence. It can hear directly from communities and experts. And it will report to this parliament, not just to the government of the day.”
“It can put pressure on private crossings and pumps. It can waterlog productive land. It can damage private infrastructure. It can put pressure on local roads and councils. None of that is an argument against environmental outcomes; it's an argument against bad policy and poor implementation. And that is exactly what communities across the Murray-Darling Basin are reacting to right now. This bill comes at a time when some of the basin community and those in the electorate of Farrer are facing a by-election. Let me be clear, this by-election is a referendum on the Albanese Labor government's approach to regional Australia, and nowhere is that clearer than in water policy.”
“Let me say this again: irrigators are required to account for every drop of water without fail, yet the Commonwealth Environmental Water Holder is not. That is a double standard this bill seeks to address. What we are hearing loud and clear from basin communities is that trust is breaking down. Stakeholders are asking basic practical questions: What watering action is proposed? What does success look like? What risks are being taken? What impacts will there be on private land, infrastructure and local communities? Too often, they are simply not being told. Instead, they're getting bureaucratic language, delayed reporting and decisions that seem to prioritise Canberra over communities. This matters because environmental watering done poorly has real consequences. It can cause bank slumping.”
“The CEWH is not some passive observer. It's one of the largest water holders in the country. It decides when water is delivered, where it goes, whether it is traded and whether it is carried over. Those decisions shape markets, they shape river systems and they shape communities. So why is it that, under this government, scrutiny of those decisions has become harder, not easier? Why is it that communities are too often told what has happened after the fact, instead of being properly consulted before decisions are made? And why is it that farmers and regional businesses are expected to comply with strict rules, metering and reporting, yet, when it comes to the Commonwealth, transparency is treated as optional?”
“It will examine the management, use and outcomes of Commonwealth environmental water holdings, whether they are delivering real ecological outcomes and, critically, what impact those decisions are having on agricultural productivity, regional economies and basin communities. Let me be very clear: this is scrutiny that is long overdue. Under this Albanese Labor government, water policy has become increasingly opaque, increasingly centralised and increasingly disconnected from the people who live and work on the land. Labor likes to talk about 'environmental water' as if that label alone gives it a social licence. But communities in the basin know better. They know that behind that label are decisions—real decisions—that affect river flows, irrigation allocations, land values and ultimately livelihoods.”
“It's about the viability of our growers, producers and farmers—whether they're in dairy, beef, horticulture, mixed farming or cropping—who rely on predictable water rules and practical on-ground management. It is the difference between a town and a community growing or slowly fading away. Right now, people in those communities are asking a very simple question: who is standing up for them when it comes to water? This bill, the Commonwealth Environmental Water Holder Commission of Inquiry Bill 2026, goes directly to that question. It establishes a commission of inquiry into the behaviour, practices and performance of the Commonwealth Environmental Water Holder, the CEWH.”
“As one of the inaugural independent directors of the Riverine Plains Farming Systems Group, which operates across southern New South Wales and north-eastern Victoria, the issue of water rights and access is critical. As a farming extension and research development body, for most of its projects there needed to be water in the right place at the right time to ensure that projects could proceed, be tested, be verified and be turned into practical advice for growers and farmers. Across the Murrumbidgee, the Riverina and the basin, water policy is not theoretical. It's not abstract. It's about the health of catchments, town water security and flood preparedness.”
“I move: That so much of the standing and sessional orders be suspended as would prevent the following from occurring immediately: (1) the Member for Lyne presenting a Bill for an Act to establish a commission of inquiry into the behaviour, practices and performance of the Commonwealth Environmental Water Holder, and for related purposes; (2) debate on the second reading of the bill proceeding immediately for a period of no longer than one hour; and (3) any questions required to complete passage of the bill then being put without delay. As the Nationals member for Lyne, I rise to speak not just about this bill but about what is at stake for the people, towns, farms, businesses and communities of the Murray-Darling Basin.”
“My question is to the Minister for Climate Change and Energy. Australia's fuel supply relies on Middle East oil shipped to refineries in Asia. Minister, how many oil tankers have left the Middle East for refineries in Asia since 28 February?”
“They expect a plan to bring inflation down without crushing growth. They expect housing policies that build homes, not just inflate prices. They expect practical and timely action on fuel costs and supply, and they expect a government that understands the pressures facing regional communities. What we need is a reset in economic policy; fiscal discipline to ease inflationary pressure; a relentless focus on productivity and private sector growth; supply-side reform in housing; a cheaper, better, fairer energy policy that delivers on reliability and affordability; support for small business, not large corporations; and a recognition that regional Australians cannot be an afterthought. People in Lyne are working harder for less. This is a moment that calls for strong, responsible economic leadership.”
“Yet we've seen delays, confusion and a lack of urgency in responding to supply pressures and price spikes as a result of the Middle East conflict. The government has been reactive, not proactive. A better approach would include strengthening oversight of fuel supply chains and pricing transparency, including giving the ACCC an explicit antihoarding power, supporting smaller wholesalers and independent service stations, not just major players, to manage price risk; improving fuel security through diversified supply, storage and domestic production; and ensuring regulatory settings allow rapid response in times of disruption. When fuel prices spike, that flows through the entire economy and drives inflation higher still. Australians do not expect perfection from their government, but they do expect competence.”
“The real solutions, the ones that are discussed with me in my electorate, are about releasing more land, investing in enabling infrastructure, streamlining planning and environmental approvals, and reducing red tape and green tape, which are driving up costs. In my electorate, families are facing tens of thousands of dollars in upfront regulatory costs before they even start building, and builders are way down too, with local government and state government taxes, and are struggling to find the workers they need. That is a barrier created by government, and it can be fixed by government. Fuel prices are another pressure point. In regional Australia, fuel is simply not optional; it's essential. It affects everything: groceries, freight, farming and household budgets.”
“This is not a coherent economic strategy; it's a cycle of higher spending, higher taxes and lower expectations. Nowhere is this failure more obvious than in housing. Australia is in the middle of a housing crisis, yet the government continues to prioritise demand-side subsidies—schemes that inflate prices—rather than address the real problem, which is supply. We're building fewer homes than we were just a few years ago, while our population has surged. That imbalance is pushing prices higher and locking young Australians out of homeownership, an issue I raised in my first speech. Now, we hear talk of changes to capital gains tax and negative gearing. Let me be clear, you cannot tax your way out of a housing shortage. If anything, such changes risks reducing investment and worsening supply constraints.”
“They don't have the flexibility in their budgets, and they're having to make real sacrifices—skipping essentials, telling their kids that they can't play footy this season, delaying retirement and, in some cases, working longer simply to stay afloat. That is not the Australian promise; that is a failure of economic management. After several years of this government, Australians have experienced a collapse in living standards. Inflation has remained stubbornly high, and government spending is at levels not seen outside of crisis periods. When government spending fuels inflation, interest rates stay higher for longer. That is why families have endured repeated rate rises and why mortgage holders are going backwards. At the same time, national debt is climbing, productivity is falling, and confidence is weakening.”
“I want to thank the member for McPherson for his motion on this very important issue. I'm sure that, for all members in this chamber, cost of living and how they are dealing with the crisis are the most important issues for our constituents. I know that, in my own electorate, it's certainly the topic that's most raised with me, and I know that it's biting hard and hurting people harder. Across communities of families, farmers and small businesses, people are being hit from every direction. Fuel prices are surging. Supply has been uncertain. This comes on top of relentless increases in everyday costs—electricity, gas, food, health, education, insurance and rent. At the same time, wages have not been keeping up. Lyne is one of the lowest income electorates in Australia. People simply do not have the buffers.”
“Even with constant calls from council, state and federal representatives for this to be corrected, every budget since has neglected to allocate a single dollar to the project. There was even a petition of more than 10,000 locals' signatures presented to the New South Wales government on the issue, yet we're still waiting. There is now a further attempt under way in the community to get the ball rolling through its submission campaign via the New South Wales Transport 'Have your say' portal. This is not the place or the issue for governments to play partisan politics, so I ask the government to provide the funding that was taken away to enable the project to get moving, to address the critical corridor and to address the congestion on the Mid North Coast at Wrights Road.”
“Deputy Speaker Swanson, I'm pleased you're here today because I'm actually going to talk about an intersection, although not one that we have in common. It's one at the other end of my electorate of Lyne, and that is the intersection of the Oxley Highway at Wrights Road and Lake Road, which is one of the most congested intersections on the Mid North Coast. It's the major arterial link to the Port Macquarie Base Hospital, to the port CBD, to industrial and education precincts and to surrounding residential areas. The growing Hastings Valley population and increased traffic volumes have placed very significant pressure on the corridor. Despite $4 million in funding being provided back in 2022 by the coalition government to finalise planning, the Albanese government cut the funding, and the project remains stalled.”
“Core operational funding for neighbourhood and community centres is crucial to support regional communities now and into the future. They are often the last line of defence for vulnerable Australians, and they deserve funding certainty, workforce support and recognition equal to the role they play. When these centres are strong, our communities are strong, but, when they are stretched to breaking point, it is the most vulnerable who pay the price. I look forward to having engagement with the Minister for Social Services. I appreciate that her office has been willing to engage with me on these important matters. I like to think that they are beyond politics, because we are trying to support those who need our support the most.”
“Consequently, with more presentations and requests for assistance and yet less funding, these centres are increasingly being forced to shift from early intervention to crisis response. They are filling the gaps left by a fragmented system. They are supporting people who have nowhere else to turn, and they are doing so with extraordinary dedication but with very limited means. With such a small amount of income, some community and neighbourhood centres estimate they are achieving well over $1.5 million in social value for their communities. This needs to be recognised and resourced appropriately by both levels of government. If we are serious about supporting regional communities, then we must recognise that community and neighbourhood centres are not optional extras. They are essential infrastructure.”
“This in turn means that the Bucketts Way Neighbourhood Group has had to cease its safety net program, which enabled the provision of fuel vouchers, online grocery shopping cards and pharmacy relief to those experiencing serious financial hardship. The cuts by this government have had a real and immediate impact. The Forster Neighbourhood Centre does not receive core operational funding; therefore, their hub is staffed by volunteers five days of the week. They are also not funded to provide crisis support, but, because they have a physical location and a door that is always open, they are increasingly doing the work of the services that are funded. This has to change. For the current financial year, Foster Neighbourhood Centre is tracking an increase of 50 per cent in requests for assistance.”
“As they've said: We are expected to do everything—from food relief to disaster recovery support—with limited staff and heavy reliance on volunteers. And those volunteers are stretched to their limits. Meanwhile, Mid Coast Outreach are taking services directly to people across vast regional distances, often at significant cost. They note: The cost of delivering outreach services across our region is rising rapidly, particularly fuel and transport, while demand continues to grow. Across all these organisations, the story is the same: demand is surging, needs are becoming more complex, and yet the resources available to meet those needs are not keeping pace. The Bucketts Way Neighbourhood Group has had $100,000 worth of federal government funding received via the Salvation Army cut.”
“As the centre has made clear: We are seeing more people than ever before who have never needed help—families, workers, older Australians—now coming to us because they simply cannot make ends meet. Yet, despite this surge in demand, funding remains short term and uncertain, making it difficult to plan and deliver sustainable services. At the Forster Neighbourhood Centre, the housing crisis is no longer abstract; it is immediate and visible. The centre reports that housing stress and homelessness are now the No. 1 issue that they're dealing with. They're seeing people sleeping in cars, couch surfing or facing eviction with nowhere to go. These are not isolated cases; they are becoming the norm. In Gloucester, the Gloucester neighbourhood centre is grappling with the realities of serving a dispersed, often isolated, population.”
“I rise today to highlight the extraordinary work of community and neighbourhood centres across the midcoast and the growing challenges they face as they support Australians doing it tough. I moved this motion to recognise the life-saving work of neighbourhood and community centres in my electorate, including the Forster Neighbourhood Centre, the Bucketts Way Neighbourhood Group, the Dungog Shire Community Centre, Mid Coast Outreach and the Manning Valley Neighbourhood Services. Each does invaluable work and provides vital services, including emergency relief, advice and referrals; child and family support; no-interest loan schemes; and various community programs. At the Dungog Community Centre, demand for support continues to rise as cost-of-living pressures bite deeper into regional households.”
“I move: That this House: (1) recognises: (a) the vital role of neighbourhood and community centres in providing essential social services to individuals and communities in need, particularly in the regions; (b) neighbourhood and community centres provide critical relief and emergency support where other services do not exist; and (c) the hard work and dedication of the staff and volunteers who work tirelessly and selflessly for others; (2) expresses concern that many centres are underfunded and heavily reliant on ad hoc competitive grant funding from state and Commonwealth governments; and (3) calls on the Government to provide long-term operational funding and dedicated infrastructure funding to secure the future of neighbourhood and community centres and the services each provide to people in desperate need of help.”
“We also acknowledge the next generation of volunteers, including young member of the year finalists Brock Windsor and Dylan Sheehy, who represent the future of the service and give us confidence that this proud tradition will continue. Importantly, behind every volunteer is a network of support—families, employers and communities who share in the sacrifice and make this service possible. Many were there to support not only their husbands, wives, fathers, mothers and grandparents but all honorary awardees too. The NSW Rural Fire Service represents courage, professionalism and quiet determination. Its members do not seek recognition. On behalf of my community and, indeed, all Australians, I say thank you.”
“Nicholas Wright and Sherrie Gaul from the Kundle Moto brigade have not only served their communities but have invested in training, mentoring and building the capability of others. We also recognise 34 recipients of the long service medal, whose service spans many decades. Jim Blackmore from the Wallaby Joe brigade has 40 years of contribution across operational and leadership roles. Andrew Tulloch from the Lake Cathie brigade has more than four decades of service and leadership. And there are those whose commitment extends even further. Gregory Bannister, Joy Walker, Howard Mitchell and Frank Vumbaca have each contributed more than 50 years to the RFS. This level of service is extraordinary. It reflects not just dedication but a lifelong commitment to community.”
“Among those recognised was Brett McMillen, awarded the National Emergency Medal clasp for his service during the devastating 2022 floods, which is a reminder of the extraordinary demands placed on RFS members not only during bushfire seasons but also during a range of natural disasters. We also recognised 14 recipients of the National Medal, awarded for diligent service over many years—people like Bruce Annetts from Tinonee brigade. His leadership, community engagement and consistent contribution, both operationally and administratively, reflect the very high standards of the service. Kevin Thornton's work in communications and aviation has strengthened operational capability and enhanced community safety across the region.”
“I rise today to acknowledge and pay tribute to the extraordinary men and women of the NSW Rural Fire Service, particularly those from the Mid Coast district who were recognised for their outstanding service to our communities at Club North Haven on Saturday. Across regional New South Wales, the Rural Fire Service is not just an emergency response organisation; it is a cornerstone of community wellbeing. It is made up of volunteers who give their time freely, who step forward when others step back and who embody service before self. It was more daunting to speak in front of these men and women than it is to speak in this parliament. Present on Saturday was 1,200 years of courage, commitment and sacrifice—an incredible achievement to say the least.”
“I move: That all words after "That" be omitted with a view to substituting the following words: "whilst not declining to give the bill a second reading, the House: (1) notes: (a) the Government spent three weeks denying the existence of a fuel crisis—first dismissing concerns, then blaming consumers, and only acting once the problem became unavoidable; (b) that after four years in office, the Government has failed to strengthen Australia's sovereign fuel capability, and now proposes to fund imports of the same resources it has banned funding for domestic production; and (c) that Australia enters this crisis weaker, with higher debt, higher taxes, persistently high inflation, and falling real wages as a direct consequence of the Government's economic mismanagement; and (2) recognises that the former Coalition Government took decisive action to strengthen fuel security, including establishing the Minimum Stockholding Obligation, legislating the Fuel Security Act, and securing Australia's last two refineries".”
“My question is to the Prime Minister. Anna, a single mum from Croydon Park in the Prime Minister's electorate, told 2GB this morning, 'I was driving my kids to their sports carnival today, panicking, driving past five fuel stations with no fuel. What do I do if there's no fuel? What if my kids get sick and I can't pick them up?' When will the Prime Minister finally take action to ensure fuel gets to his own constituents?”
“We live in regional NSW and have no other option. If I lose my sight, I will not be able to drive. Who will look after my husband? I cannot understand the rationale behind the government's decision to do this. It is extremely concerning, and I've written to the Minister for Health and Ageing, urging him to reconsider. Any loss of eyesight caused by this government's decision is unacceptable and, importantly, avoidable. While I support this bill, I call on the minister to go further. Implement the necessary mechanisms to ensure health insurers pay their fair share by mandating a return to 90 per cent benefit ratios from annual premiums. I also urge the minister, for the sake of Australians, to seriously consider the need for a mandatory code of conduct in contracting between private health insurers and private hospitals.”
“This change will result in over 12,200 people who currently receive eye injection treatment in private hospital and day surgery settings no longer being able to use their private health insurance to pay for their treatment. Countless individuals will have to stop treatment due to the high out-of-pocket cost. As the only treatment they have access to is in a private ophthalmology clinic, patients will be at greater risk of irreversible vision loss and blindness because of this change. John, who lives in Lakewood, has told me: without this treatment, I will not be able to see… This is the second time I have had to complain about the way our Labor Government is treating people like myself. Fiona from Kendall said: I am a carer for my husband. I would not be able to afford injections if the rules change.”
“Without an urgent care clinic for Taree, which, as I said earlier, I've repeatedly requested, and without any real progress taken by the Minns New South Wales government on the delivery of the Forster-Tuncurry urgent care clinic, secured by my colleague Tanya Thompson, and a public hospital in Forster, health in the Lyne electorate—the oldest electorate and one of the poorest—will reach unprecedented and unimaginable lows. On another issue—in my electorate, countless constituents have contacted me about the Australian government's planned reclassification of MBS items for eye injections, from a type B to a type C procedure, for private health insurance purposes on 1 July 2026.”
“If either of these facilities were to close because of private insurance companies refusing to meet prepandemic benefit payout ratios, Manning Base Hospital, the only public hospital in the Lyne electorate, would be forced to pick up the slack. My constituents and I know too well that this is simply not possible. Manning Base Hospital is not receiving its fair share of funding and resources, and the state government's latest attempt to break the back of regional health has gone so far as to downgrade the hospital and remove beds.”
“The complementary nature of Australia's hospital system—private and public together—has long been a strength, and it's why we have historically been regarded as the world's best. Private hospitals shouldering so much of the workload alleviates massive pressure on the public system, but the financial viability issues confronting all private hospitals are adding and will continue to add to those public pressures. In Lyne, the Mayo Private Hospital employs 243 people and admits 12,201 patients, or thereabouts, each year. Forster Private Hospital employs 155 people and admits over 11,000 patients each year.”
“All of this dramatically erodes the access, choice and quality that people rightly expect from the ever-increasing premiums they pay for private health care. Not only does this erode the choice, access and value of private health care; it places more pressure on an already overstretched public hospital system. Australia's healthcare system relies heavily on Australia's 633 private hospitals and their more than 36,000 beds, so getting the private sector right is critical for our public sector. Private hospitals account for 41 per cent of all hospital admissions—some 5.14 million each year—and 70 per cent of all planned surgeries, with 1.72 million procedures last year. They also perform the majority of many complex operations.”
“After four years of insurers failing to meet their obligations to private hospitals, the federal health minister's March 2024 warning for them to dramatically improve the benefits ratio has fallen on deaf ears. Mandating this requirement is now essential and needs to happen quickly to halt the alarming rate of private hospital closures. Some 20 private hospitals have already closed their doors entirely, while 80 services, predominantly mental health and maternity, have been permanently cancelled in the remaining hospitals, including Mayo Private Hospital in Taree. The Australian Private Hospitals Association is aware of at least nine private hospitals at imminent risk of closing, which is on top of the issues being confronted by non-APHA member Healthscope, of whose hospitals 12 are in doubt of continuing.”
“As a result, over the last several years, insurers have been keeping more of the cash generated through high premiums for themselves and paying less of it to the hospitals. Despite massive windfalls, Medibank barely shifted the dial on the benefits ratio paid to private hospitals—up just 1.3 per cent on 2024 to come in at 87.1 per cent for the year. Bupa actually went backwards, paying out even less than in 2024—down 0.45 per cent for a paltry 83.3 per cent payout ratio. APRA data shows that, over the last four years, health insurance companies underpaid private hospitals to the tune of more than $4 billion. Over the same period, the health insurance companies recorded unprecedented profits of more than $7 billion. That has to change. Without enforceable, mandated ratios, insurers will continue to underfund the private system.”
“Predominantly funded by private health insurance, prior to COVID the benefits ratio was 90 per cent. Over the last four consecutive years, it has languished at or below 85 per cent. This is because there is no mandatory minimum benefits ratio that private health insurers must comply with. There is no mechanism to ensure premium increases are passed on to healthcare providers. Instead, the private health companies are allowed to negotiate with the private hospitals to set the benefits ratio. In reality, the five largest health insurers—Medibank, Bupa, HCF, nib and HBF—all use their market dominance to overpower hospitals and get a favourable agreement for themselves. Private insurance companies are not so much negotiating with private hospitals as coercing them.”
“The benefit to insurers is that customers are still paying higher premiums each year, and, if they get sick or injured, there are a slew of basic treatments and care provisions they are not covered for and for which they will need to pay substantial out-of-pocket costs. This represents a massive saving for insurers. The bill also does nothing to confront insurers who are not meeting the expected benefits ratio, or the percentage of premiums people pay each year that flows to healthcare providers. As it stands, Australia's private hospitals, including those in the Lyne electorate, face an existential crisis. Since COVID, the viability of private hospitals has seen a steep decline. This threat has now crossed a line that sees many hospitals simply unsustainable.”
“Over the last five years, the health insurers have dramatically skewed their focus in favour of lesser coverage—namely, silver, bronze and basic-cover policies. A record 70 per cent of people with private hospital cover—some 8.8 million Australians—have major exclusions built into their policies. Often they are unaware of these restrictions until they are sick or injured and at their most vulnerable. Insurers have been forcing customers away from full and comprehensive gold-level policies. As the Commonwealth Ombudsman found in 2024, health insurers have used a legislative loophole to inflate gold-level cover by 45 per cent over four years, when official average premium increases totalled 11.9 per cent over the same period.”