Cleveland accountant Greg Jewell said this measure did not relate to the Medicare surcharge or the “gap” patients with private insurance paid when they visited a doctor.

“This is to do with the abolition of the 30 per cent government subsidy or rebate people get when they sign up with a private health fund and, in doing so, pay a reduced premium,” he said.

“Stopping this rebate will knock out many young people and struggling families from private health funds, which need young, healthy people to subsidise the older, sicker people in the fund.

“Those in private health funds can expect their premiums to go from 70 per cent to 100 per cent,” Mr Jewell said.

He said with household savings climbing to more than 10 per cent, it was obvious families and the elderly were wary of rises in the cost of living.

However, looming over the caution at the cash register was the spectre of inflation and the possibility of interest rate hikes down the track, Mr Jewell said.

The Budget also announced a 5.6 per cent rise in job creation in the 65-plus-age bracket category, the largest rise across all age groups, with the average age group experiencing a 3.3 per cent growth.

“I don't think this increase in job creation is a voluntary move for people in that category to go back to work,” Mr Jewell said.

“These figures are more indicative of people having to go back to work because their super funds have taken a beating during the global financial crisis.

“In Redlands, this is affecting the older age groups and this budget has nothing in it for them except a set-top box.

“These elderly people need hips and knees, not set-top boxes, which are going to cost the taxpayer $400 a set, when you could go to a local store and buy a brand-new digital television for less.

“This has all the hallmarks of another insulation scheme bungle but at least this time, the Government has limited the damage to $308million,” he said.