The Australian Capital Territory government is set to implement an increased ambulance levy, which will apply exclusively to residents with private health insurance.
Starting in January, individuals will pay an additional $180 per year, while families will see a $360 annual increase.
This policy affects more than 319,000 people in the ACT – about 65% of the population – who already face some of the nation’s highest out-of-pocket costs for medical services.
The levy, introduced as part of the territory’s latest budget, has been described by industry groups as a targeted tax on those with private health cover.
The measure comes at a time when cost-of-living pressures are already impacting many households.
Private Healthcare Australia CEO Dr Rachel David has voiced concerns that the levy could undermine the role of private insurance in supporting the health system.
“This tax now adds $180 to the annual cost of health insurance for individuals in 2026 and a whopping $360 for families,” she said. “Most people with health cover are not wealthy – two-thirds earn under $90,000 a year. In the middle of a cost-of-living crisis, they simply cannot afford another hit.”
David suggested that the increased cost may prompt some policyholders to reconsider their coverage, potentially leading to higher demand on public hospitals.
“Private hospitals currently deliver two-thirds of all elective surgery, 55% of mental health admissions, and 76% of rehabilitation care. Losing this capacity would put enormous pressure on Canberra’s public hospitals,” she said.
She also noted that private health insurance holders in the ACT contribute to healthcare costs through multiple channels, including taxes, premiums, and additional fees.
“People in the ACT with private health insurance are being stung multiple times to pay for the same services. They pay through their taxes, through their health insurance premiums, through extra fees and charges when they go to a public hospital, through the increased levies, and through paying the most inflated doctors’ fees in Australia,” David said.
The ACT government’s approach has also come under scrutiny for encouraging public hospitals to bill private insurers, a practice that David argues increases premiums for all policyholders.
“Public hospitals are meant to be free of charge for all patients. We all pay our taxes to support this. When a public hospital bills your health insurer, you don’t get anything in return and it drives up the cost of health insurance premiums for everyone in the ACT,” she said.
David called for the government to reconsider the policy, stating: “We all understand the Barr Government has a massive deficit. But slugging families who are trying to do the right thing is the wrong answer. This policy is a kick in the teeth for ordinary Canberrans and must be scrapped.”
Recent data from Canstar has revealed that private hospital insurance premiums have risen at rates above the government’s average increase of 3.73% announced in April.
Gold-tier policies for individuals increased by an average of 13.8%, or $442 annually. Family policies at this level reached an average of $7,207 in June, up $858 from March.
Premium changes varied by policy tier. Bronze and Silver categories saw smaller increases, between 1.5% and 5.2%, while Basic-tier cover experienced a slight decrease. The Gold tier recorded the largest hikes, reflecting broader cost pressures in the sector.
Location also played a role in premium differences. Residents in Victoria and Queensland faced some of the highest average Gold-tier premiums, while those in the Northern Territory and Western Australia paid the lowest. These differences are attributed to factors such as market competition, service delivery costs, and insurer pricing strategies.
