The Australian Government private health insurance rebate reduces your insurance premiums, making private health insurance more affordable. It is income tested and your rebate percentage entitlement is reduced as your income increases, as shown in the following table:
Current rebates (from 1 April 2021)
|Tier||Income for Medicare levy surcharge purposes||Age less than 65||Age 65-69||Age 70+|
|Base tier||Singles up to $90,000; Couples/Families up to $180,000||24.608%||28.710%||32.812%|
|Tier 1||Singles $90,001 - 105,000; Couples/Families $180,001 - 210,000||16.405%||20.507%||24.608%|
|Tier 2||Singles $105,001 - 140,000; Couples/Families $210,001 - 280,000||8.202%||12.303%||16.405%|
|Tier 3||Singles more than $140,000; Couples/Families more than $280,000||0%||0%||0%|
Note: Single parents are subject to family tiers. For families with dependent children, the income thresholds increase by $1,500 for each child after the first child.
How to claim the rebate
You can either have the rebate added as an automatic reduction on your premium amount – or you can take care of it through your annual tax. Your private health insurance tax statement will tell you how much you can claim.
You can also choose a tier to reduce the amount of rebate you get back – and you can change this at any time.