The Australian Government Rebate on private health insurance (Rebate) is an incentive whereby you’re offered a Rebate on your private health insurance premiums.
The level of Rebate on private health insurance is based on your household income and the age of the oldest person covered by the policy.
If you’re eligible for a Rebate you can choose to receive it either as a reduced premium or in a lump sum at tax time. Most people choose to take advantage of the lower premiums.
Eligibility
To find out if you’re eligible for the Rebate you first need to check what income tier* you sit in.
| Base Tier | Tier 1 | Tier 2 | Tier 3 (no rebate) | |
|---|---|---|---|---|
| Your single income is | $93,000 or less | $93,001 - $108,000 | $108,001 - $144,000 | $144,001 or more |
| Your family income is | $186,000 or less | $186,001 - $216,000 | $216,001 - $288,000 | $288,001 or more |
The families' threshold is increased by $1,500 for each dependent child after the first. Families include couples and single parent families.
*FY23/24 Income Thresholds
Rebate percentage for period 1 April 2021 - 31 March 2023
| Age | Base Tier | Tier 1 | Tier 2 | Tier 3 (no rebate) |
| Under age 65 | 24.608% | 16.405% | 8.202% | 0.00% |
| Age 65-69 | 28.710% | 20.507% | 12.303% | 0.00% |
| Age 70 or over | 32.812% | 24.608% | 16.405% | 0.00% |
Medicare Levy Surcharge
| All ages | 0.0% | 1.0% | 1.25% | 1.5% |
Income for rebate purposes will be calculated by the Australian Taxation Office (ATO), they will apply the same rules that apply for the Medicare Levy Surcharge; further assistance can be found on the ATO website www.ato.gov.au.
You can change your Rebate Tier any time simply by advising us in writing. Any difference between what you have claimed during the year and your entitlement as calculated by the ATO will be refunded or charged on your tax return assessment. There are no penalties for estimating an incorrect Rebate Tier.
Are you aged 65 years and older?
The premiums above are based on the oldest person on the policy being under 65 years. For those 65 years or older you may be entitled to a higher Rebate, please call us.
Lifetime Health Cover (LHC) Loading
The premiums shown in this table are based on rates applying to those having existing hospital cover with a certified age of entry of 30 or, who join hospital insurance by June 30 following their 31st birthday. If neither of these apply, contact us for the LHC premiums that apply to you.
What Rebate am I eligible for if I pay a LHC Loading?
If you are subject to a LHC Loading, the rebate only applies to the base premium and not to the LHC loading component of your premium.
For more information on on the rebate, including how to claim at tax time, please visit ato.gov.au