Budget: MBS rebates frozen until 2014

There will be no increase in MBS rebates until July next year as the Federal Government freezes indexation payments.

In what Treasurer Wayne Swan last night described as a "realignment", the annual indexation increase will be scrapped for November and held back until July next year.

From then on, the MBS will be indexed at the start of the financial year, the 2013 budget papers say.

The measure rips out $160 million from Medicare in 2013-14, but it will save a total of