For affordable health insurance
The less we have to pay on our health insurance premiums, the better for everyone. And the Private Health Insurance Rebate helps make that happen.
The rebate is the amount the Australian Government contributes to the cost of private health insurance premiums. You can choose to receive the rebate upfront, as a reduction of your premium or at tax time.
It’s income tested – so as your income increases, your rebate percentage decreases (as you’ll see here).
Current income thresholds and rebates
|Tier||Income for Medicare levy surcharge purposes||Age less than 65||Age 65-69||Age 70+|
|Base tier||Singles up to $93,000; Couples/Families up to $186,000||24.608%||28.710%||32.812%|
|Tier 1||Singles $93,001 - $108,000; Couples/Families $186,001 - $216,000||16.405%||20.507%||24.608%|
|Tier 2||Singles $108,001 - $144,000; Couples/Families $216,001 - $288,000||8.202%||12.303%||16.405%|
|Tier 3||Singles more than $144,000; Couples/Families more than $288,000||0%||0%||0%|
Note: For single parents and couples with children for MLS purposes, the family income threshold increases by $1,500 for each child after the first. Income, child and dependant have special definitions for MLS purposes. For more information, see the ATO website
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 return. Your private health insurance statement will tell you how much of your premium is eligible for the rebate and how much rebate you’ve already received.
You can also choose a tier to reduce the amount of rebate you get back – and you can change this at any time.