From January 2026, people with health insurance in the ACT will be forced to pay $180 a year — or $360 for families — under the Barr Government’s unfair health insurance tax.
This so-called “Ambulance Levy” only applies to people investing in their own healthcare through private cover. In the 2025–26 Budget, the Government announced a 10% increase in the levy to help repair its budget deficit.
Who pays
- 65% of Canberrans (319,187 people) will be hit.
- People with single policies will see their levy rise from $164 to $180.
- Families will jump from $328 to $360.
Why it matters
- ACT residents already pay the highest GP and specialist fees in Australia.
- For many households, this is yet another cost-of-living hit.
- Most people with private cover are not wealthy — two-thirds earn under $90,000.
More pressure on public hospitals
This tax risks pushing people to downgrade or drop their cover, sending thousands more into already overstretched public hospitals. That means:
- Longer waits in emergency departments
- Blowouts in surgery waiting lists
- Higher costs for the ACT Government in the long run
Unfair and short-sighted
During a cost-of-living crisis, Canberra families should not be punished for doing the right thing by taking pressure off the public system.
This policy is unfair, short-sighted — and it must be scrapped.