Australian Government rebate on Private Health Insurance

Reduces private health insurance costs for people eligible for Medicare, within income thresholds and with certain health funds.

Eligibility

Australian Government rebate on Private Health Insurance

Families and individuals who pay private health insurance premiums may be eligible for Australian Government rebates on private health insurance. If you are paying a registered hospital or general private health fund insurance, your costs may be reduced.

The rebate reduces the amount you pay for private health insurance. The rebate amount you get is based on the age of the oldest person covered by the policy and by annual earnings.

You must be covered by the policy and must be eligible for Medicare.

Rebate income tier amounts

The following tiers apply to the Australian Government rebate:

 Base TierTier 1Tier 2Tier 3
Singles$90,000 or less$90,001 to $105,000$105,001 to $140,000$140,001 or more
Family/Couples$180,000 or less$180,001 to $210,000$210,001 to $280,000$280,001 or more

The thresholds are increased each year, based on growth in Average Weekly Ordinary Time Earnings. Single parents and couples including de facto couples are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.

More information can be found on the Department of Health website.

Eligible private health fund members

Not all private health funds and private health insurance policies are eligible for Australian Government rebates. They are only available if you have a complying health insurance policy with a registered health fund or insurer. Check with your health fund to see if they are registered and if your private health insurance policy is eligible for the rebate.

Medicare levy surcharge

The Medicare levy surcharge is for people who earn an income over the Medicare levy surcharge threshold and who choose not to have private hospital health insurance. For more information about the Medicare levy surcharge, visit the Australian Taxation Office’s website.

Claiming

Claiming the Australian Government rebate on Private Health Insurance

If you pay your premiums fortnightly, monthly, in yearly instalments or in advance, there are 2 ways to claim the Australian Government rebate on Private Health Insurance.

From your fund

You can ask your fund to give you the rebate as a premium reduction, reducing your upfront costs. To claim the rebate as a premium reduction, register with your health fund who will send you a form or tell you what you need to do.

From the Australian Taxation Office

The rebate may be claimed back on your annual income tax return, if you have paid the full, upfront cost. Your health fund will give you a statement at the end of the financial year to help you fill in your tax return.

Resources

More information about the Australian Government rebate on Private Health Insurance

Call us on 1300 554 463.

A Register of Private Health Insurers under the Private Health Insurance (Prudential Supervision) Act 2015 is available on the APRA website.

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This information was printed from humanservices.gov.au It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.