Australian Government rebate on Private Health Insurance

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

Eligibility

If you or your family pay private health insurance premiums, you may be eligible for the Australian Government Rebate.

Most people with private health insurance can claim the rebate as an upfront reduction on their private health insurance premium. We pay the rebate to your insurer and the insurer reduces your premium.

If you don’t claim the rebate as a reduction to your premium you can claim it through your tax return. It may be claimed as a tax offset in your annual income tax return.

Who can get it

You may get a reduced premium if your health insurance policy covers:

  • hospital
  • general treatment - also known as ancillary or extras, or
  • both

You must be eligible for Medicare and the policy must cover you to get the rebate. You must also meet the income thresholds.

Rates

Your premium reduction depends on:

  • your family composition,
  • the age of the oldest person covered by the policy, and
  • your annual income

Read more about income thresholds and rebate amounts on the Australian Taxation Office website.

Medicare levy surcharge

If you don’t have private health insurance, you may have to pay a surcharge. This is only if your income is more than the Medicare levy surcharge threshold.

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

Eligible private health insurers

The rebate is available for private health insurance policies with a registered Australian health insurer.

Your health fund can tell you if:

  • they’re registered, and
  • your private health insurance policy is eligible for the rebate

You can also check your health fund’s registration on the Private Health Insurance Ombudsman website. If they’re listed, they’re registered under the Private Health Insurance Act 2007.

Not all private health insurers and policies are eligible for the Australian Government Rebate.

Claiming

There are 2 ways to claim the rebate. You can claim from your health insurer or from the Australian Taxation Office.

From your health insurer

You can claim the rebate as an upfront reduction to your private health insurance premium. We’ll pay the rebate to your health insurer and they’ll reduce the cost of your premium. Register with your health insurer to do this. They'll give you a form to fill in or tell you what you need to do.

You can also use our form and submit it to your health fund. Complete the Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium form.

From the Australian Taxation Office

You can claim the rebate through your tax return if you don’t get it as a premium reduction. Your health insurer will send you a statement at the end of the financial year. This will help you fill in your tax return.

Read more about claiming this offset through your tax return on the Australian Taxation Office website.

Page last updated: 14 December 2018