Rebate on Private Health Insurance

Rebate on Private Health Insurance

Australian Government Rebate on Private Health Insurance

Back in the day, the Government decided to offer people 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 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

as at 1 July 2017

  Income threshold
(for 2017/18 financial year)
Age & Rebate Amount
(age of the oldest person on your cover)
Under 65 years 65-69 years 70+ years

Base Tier

$90,000 or less
$180,000 or less
25.934% 30.256% 34.579%
Tier 1 Single
$90,001 – 105,000
$180,001 – 210,000
17.289% 21.612% 25.934%
Tier 2 Single
$105,001 – 140,000
$210,001 – 280,000
8.644% 12.966% 17.289%
Tier 3 Single
$140,001 or more
$280,001 or more
0% 0% 0%

* 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.


Nominate your rebate tier

You can nominate your rebate tier by using our Online Member Services, by filling out our Rebate Tier Nomination Form, emailing or calling 1800 808 690.


Need some more help?

We've put together a helpful list of questions and answers for you with our most popular member enquiries.