On this page
- How does the rebate work?
- How do you get the rebate?
- How much rebate do you get?
- Lifetime Health Cover
- When to update your rebate tier
- How to change your rebate tier
How does the private health insurance rebate work?
The Australian Government may pay up to 32% of cost of your private health insurance, depending on your age and how much you earn.
It was introduced in 1999 to encourage more people to take our private health insurance, and by doing so partly reducing the stress on the public health system.
How do you get the rebate?
You have two ways to claim the private health insurance rebate – as a reduction to the cost of your private health insurance, or as a tax offset.
Getting the rebate with Police Health
Police Health relies on you to provide us the correct information about the earnings bracket of yourself and your partner’s earnings bracket (if applicable).
This allows us to set your premium amount correctly.
Claiming the rebate through tax
We don’t penalise you if you choose a lower income tier than you’re in and therefore claim a higher rebate.
However, if you do this the Australian Tax Office (ATO) will charge you for any shortfall in your tax – which may be a nasty surprise.
Alternatively, if you mistakenly put yourself in a higher earning bracket than the one you’re in you’ll likely get a refund from the ATO.
Please note there may be other financial considerations to think of when making this decision. For more information, go to the ATO’s ‘Private health insurance rebate’ page.
How much rebate do you get?
Most Australians with private health insurance currently receive a rebate from the Australian Government to help cover the cost of their premiums.
The private health insurance rebate is income tested. The table below details the different rebate amounts.
Private Health Insurance rebate and income thresholds effective from 1 April 2026
Singles Families |
Base Tier $101,000 or less $202,000 or less |
Tier 1 $101,001-$118,000 $202,001-$236,000 |
Tier 2 $118,001-$158,000 $236,001-$316,000 |
Tier 3 $158,001 or more $316,001 or more |
|---|---|---|---|---|
| < Age 65 | 24.118% | 16.079% | 8.038% | 0% |
| Age 65-69 | 28.139% | 20.098% | 12.058% | 0% |
| Age 70 + | 32.158% | 24.118% | 16.079% | 0% |
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the income thresholds are increased by $1,500 for each child after the first. (privatehealth.gov.au)
Does the Lifetime Health Cover loading apply to my rebate?
No, if you have Lifetime Health Cover (LHC) loading, the private health insurance rebate does not apply to the LHC component of your cover.
You can think of the LHC loading as a surcharge for not having insurance earlier. The government discount only applies to the regular cost of your insurance, not the surcharge.
When should I update my rebate tier?
There are three main points to consider when updating a rebate tier – income change, marital status change and age change.
Income change
If your income goes up or down significantly, you might qualify for a different rebate tier. This could mean getting a bigger discount or even losing eligibility altogether.
Marital status change
Getting married, separated, or divorced can affect your rebate tier. As a couple, your income is combined, potentially pushing you into a different tier.
Age change
If you come under the Base Tier, Tier 1, and Tier 2 you can update your income age when you turn 65 and 70.
This is because at these birthdays your rebate will increase (as of 7 March 2024), reducing the cost of your private health insurance.
How do I change my rebate tier?
If you're a member with Police Health, it’s simple. Call us on 1800 603 603 or email us at enquiries@policehealth.com.au.