Government rules

Here is where you can read some of the government rules that are key to understanding health insurance in Australia. We don’t like complexity any more than you do, so we keep it as simple as possible.

Australian Government Rebate on Private Health Insurance

The Australian Government may subsidise the cost of your health cover, depending on your age and how much you earn. Read this page for all the income thresholds that determine if you and your family get a rebate.

Age-based discount

Under 30? You could get up to 10% off the cost of your Peoplecare Bronze Plus Hospital or Basic Plus Hospital cover. What’s even better with this discount is that you could keep it until you turn 41. That’s more than a decade worth of savings!

Lifetime Health Cover (LHC) loading

Lifetime Health Cover loading increases the cost of hospital cover if you take it out later in life. If you have hospital cover by 1 July after your 31st birthday and keep it, you don’t have to worry about it.

Medicare Levy Surcharge

The Medicare Levy Surcharge is payable if you don’t have hospital cover and earn over certain income thresholds as either a single or a family. A levy is an extra tax to pay. If you get hospital cover, you won’t pay the Medicare Levy Surcharge.

Medicare Benefits Schedule (MBS)

The Medicare Benefits Schedule (MBS) is a list of fees for medical services set by the Government. The MBS fees matter because if your specialists charge more than the MBS fees, you could have out-of-pocket expenses. Luckily there’s a way to reduce your out-of-pocket expenses called Access Gap.

Pharmaceutical Benefits Scheme


The Pharmaceutical Benefits Scheme (PBS), is a government subsidy that reduces the cost of some prescription medications.