Australian Government Rebate

The Federal Government offers a rebate to help with the cost of private health insurance (so that more people would take out private cover), and to help take the pressure off the public hospital system.

There are a few things to know about the Government Rebate:

  • It’s income tested
  • It’s only applied to the standard cost of your cover. If you have a Lifetime Health Cover loading, the Rebate isn’t applied to that portion of your payments
  • The Rebate you get is based on the age of the oldest person of your membership, your taxable household income (for Medicare Levy Surcharge purposes), CPI (inflation) and the average health fund industry increase in premiums
  • It’s up to you to let us know your Rebate Tier. But don’t worry – if you don’t tell us (or choose the wrong one) the ATO will work out any difference when you do your tax
  • If you aren’t sure which Tier to choose, head to health.gov.au or ask your tax agent, financial advisor or the ATO
  • You don’t have to take the Rebate as a reduced premium, you can pay the full cost of your health cover and claim any Rebate back at tax time

Work out your Rebate Tier

 

Step 1: Income Threshold
(for 2019/20 financial year)

Step 2: Age & rebate amount
Age of the oldest person on your cover
Medicare Levy Surcharge
(This will only apply if you don't have private hospital cover)
Under 65 years 65-69 years 70+ years
Base Tier

Single
$90,000 or less
Family*
$180,000 or less

25.059% 29.236% 33.413% 0%
Tier 1

Single
$90,001 - 105,000
Family*
$180,001 - 210,000

16.706% 20.883% 25.059% 1%
Tier 2

Single
$105,001 - 140,000
Family*
$210,001 - 280,000

8.352% 12.529% 16.706% 1.25%
Tier 3

Single
$140,001 or more
Family*
$280,001 or more

0% 0% 0% 1.5%

*If you're a family with children, the income threshold for each tier is increased by $1,500 for every child after your first.

Family includes couples and single parent families.