Australian Government Rebate on Private Health Insurance
Learn what it is, who is eligible and how it can be claimed.
What is the Australian Government Rebate on Private Health Insurance?
The Australian Government provides an income tested rebate to help people with the cost of private health insurance, in an effort to take pressure off the public healthcare system and keep treatment accessible.
How does it work?
When you take out hospital or extras cover, you nominate a rebate tier based on your annual household income.
Your selected tier and the age of the oldest person on your policy, is used to determine how much the Australian Government will contribute towards your health insurance costs.
Who is eligible for the rebate?
To claim the private health insurance rebate you must:
- be eligible for Medicare
- have a complying health insurance product (all GMHBA hospital and extras covers are eligible for the rebate)
- be on either Base Tier, Tier 1 or Tier 2, as determined from 1 July 2023 by your annual income below
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $93,000 or less | $93,001-$108,000 | $108,001-$144,000 | $144,001 or more |
| Couples / Families | $186,000 or less | $188,001-$216,000 | $216,001-$288,000 | $288,001 or more |
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
Income threshold rates from 2014-15 to 2022-23
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $90,000 or less | $90,001-$105,000 | $105,001-$140,000 | $140,001 or more |
| Couples / Families | $180,000 or less | $180,001-$210,000 | $210,001-$280,000 | $280,001 or more |
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
For more information on eligibility, check the ATO website.
How much do you receive?
The rebate is adjusted each April, based on the Rebate Adjustment Factor. The amount you get back is a percentage of your overall cost, as below.
Australian Government Rebate on Private Health Insurance
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Rebate Entitlement | ||||
| Under 65 | 24.608% | 16.405% | 8.202% | 0.00% |
| 65-69 | 28.710% | 20.507% | 12.303% | 0.00% |
| 70+ | 32.812% | 24.608% | 16.405% | 0.00% |
Note: Rebate levels are adjusted annually on 1 April based on the Rebate Adjustment Factor.
How do I claim the rebate?
If you're eligible, there are two ways to claim the rebate;
- As a reduction on your premium, so the amount you pay your health insurer is reduced, or
- You pay the standard amount for your premiums and get a lump sum refund at tax time.
To receive the rebate as a reduced premium, you need to complete a rebate form.
Please note: For individual tax advice please consult your tax professional or the ATO website.
If your details change
If your annual income changes you need to let us know, as this may affect the rebate amount you're eligible to receive.
If you're receiving your rebate as a reduced premium, and your rebate tier doesn't match your taxable income, you may get an refund or have an extra amount to pay when you lodge your tax return.
Contact us to make a change.