Australian Government rebate on Private Health Insurance

A refund for part of your private health insurance costs based on age and annual earnings.

Eligibility basics

  • have private health insurance for hospital or general extras or both with an approved insurer
  • eligible for Medicare

Eligibility

About

Families and individuals who pay private health insurance premiums may be eligible for Australian Government rebates.

Your costs may be reduced if you have a health insurance policy with an Australian registered health insurer that provides the following cover:

  • hospital
  • general and extras, or
  • both

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 be eligible for Medicare to receive the rebate.

Rebate income tiers

The rebate is income tested. If your income is higher than the thresholds on the Private Health Insurance Ombudsman website you may not be eligible.

Income thresholds

Most Australians with private health insurance currently receive a rebate from the Australian Government to help cover the cost of their premiums. The private health insurance rebate is income tested.

Read more about income thresholds on the Private Health Insurance Ombudsman website.

Rebate amounts

The rebate you receive is a percentage of your insurance premium based on your tier and the age of the oldest person covered by the policy.

Read more about private health on the Private Health Insurance Ombudsman website.

Eligible private health fund members

Not all private health funds and private health insurance policies are eligible for Australian Government rebates.

Private health insurance policies are only available if you have a complying health insurance policy with an Australian 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.

A list of health funds registered under the Private Health Insurance Act 2007 can be found on the Private Health Insurance Ombudsman website.

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.

The Medicare levy surcharge rate depends on which income tier you are in.

Base Tier Tier 1 Tier 2 Tier 3
0.0% 1.0% 1.25% 1.5%

Read more about the Medicare levy surcharge on the Australian Taxation Office website.

Claiming

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 or from the Australian Taxation Office.

From your fund

You will need to register with your fund for the rebate as a premium reduction to reduce your upfront costs. To claim the rebate as a premium reduction, register with your health fund and they will provide you with a form to complete or tell you what you need to do.

You can also register by completing an Application to receive or change the Australian Government Rebate on Private Health Insurance as a reduced premium form and submitting it to your health fund.

From the Australian Taxation Office

The rebate may be claimed back on your annual income tax return, if you have not claimed it as a premium reduction. 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 rebates for private health insurance

To find out more 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 Australian Prudential Regulation Authority website.

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Page last updated: 7 September 2017