Private health insurance rebate

The Australian Government private health insurance rebate reduces your insurance contributions, 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:

From 1 April 2017 the below rebates apply:

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

25.934% 30.256% 34.579%
Tier 1

Singles $90,001 - 105,000;

Couples/Families $180,001 - 210,000

17.289% 21.612% 25.934%
Tier 2

Singles $105,001 - 140,000;

Couples/Families $210,001 - 280,000

8.644% 12.966% 17.289%
Tier 3

Singles more than $140,000;

Couples/Families more than $280,000

0% 0% 0%


You can claim this rebate either:

  • as an automatic reduction on your contribution amount, or
  • through your annual tax return (your private health insurance tax statement will indicate the amount you are eligible to claim).

You can also nominate a tier to reduce the amount of rebate you receive and change that nomination at any time.