Kevin Rudd has not been honest with the Australian people. He promised again and again that he would not touch the private health insurance (PHI) rebate. That emphatic promise has been shattered in this year’s Budget.

All Australians will now pay the price for the Rudd Government’s sustained attack on private health insurance.

- Insured Australians who earn over $75,000 will pay more because of the cut to the PHI rebate, and if they drop out altogether they will still pay more due to an increased Medicare Levy Surcharge.

- Insured Australians who earn under $75,000 will pay more because of increased premiums due to “younger and healthier” people dropping out. It is estimated that premiums could increase by 10% or even more a year compared to around 6 per cent per annum now.

- Uninsured Australians will be waiting longer in the public hospital queue for essential treatment because of the influx of people into a public health system already under extreme pressure.

Every Australian knows that the cost of health care is growing as are the waiting lists for public hospitals. This savage cut will drive up premiums and place unsustainable pressure on the public health system.

The changes to the private health insurance rebate are just the latest phase in Labor’s unrelenting war against private health insurance - Labor hates private health insurance.

The Coalition believes in the right of all Australians to take charge of their own health care needs and plan for the future - We have always worked hard to deliver incentives to promote the uptake of private health insurance and take the pressure off Medicare.

We remain firmly committed to Medicare as the cornerstone of our health system. In fact, the Coalition is the best friend Medicare ever had. Over the term of the previous Coalition Government, Medicare funding increased by 48 per cent in real terms. We also lifted private health insurance levels from 34 per cent to 44 per cent.

Australians deserve a strong and well balanced health system that supports Medicare but also encourages self-reliance.

We have provided Mr Rudd with a credible alternative to cutting the PHI rebate that will not to drain essential resources from our health system – an increase to the excise on tobacco. Mr Rudd is now faced with a tough decision - take billions out of private health insurance or increase the excise on tobacco.

Australians are now paying the price for the Rudd Government’s reckless spending.