Kevin Rudd won't rule out an early election if the Senate rejects plans to means test the 30 per cent private health insurance rebate a second time.
"Let's just see what they do," the prime minister told the Seven Network of coalition opposition to the $1.9 billion measure.
Labor already has a trigger for a double-dissolution election, but would prefer to use health rather than the planned emissions trading scheme (ETS) as its prime reason for going to the polls.
Means test debate
The government reportedly will use next week's sittings of parliament to push through the means test, rejected by the Senate in September.
Mr Rudd said the change was "a huge budgetary measure".
"I would much rather have that to invest in the public hospital needs of our country.
Asked if he would seek an early election on health, Mr Rudd: "Let's wait and see".
He reiterated his preferred position of governments running their full term.
In the case of his own, that is the end of the year.
The government has until August 11 to call a double-dissolution election.
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