Private Health Insurance

Australian Government Rebate

The Australian Government Rebate was introduced as an incentive to encourage more Australians to take out private health insurance. It's designed to help Australians meet their private health insurance costs by providing a discount based on your level of income.

It makes private health insurance more affordable and accessible. And it provides the opportunity to select a more comprehensive level of cover.

What are the income thresholds?

The income thresholds for 2013–2014 are:

INCOME THRESHOLDS
FULL REBATE TIER 1 TIER 2 TIER 3
Singles Less than
$88,000
$88,001–
$102,000
$102,001–
$136,000
$136,001+
Couples/ Families Less than
$176,000
$176,001–
$204,000
$204,001–
$272,000
$272,001+

For families with children the thresholds are increased by $1,500 for each dependant child after the first. Single parents and couples with dependant children are also subject to the family thresholds.

What level of rebate will I get?

The table below shows the rebate you'll be eligible to receive from 1st April 2014.

Australian Government Rebate
FULL REBATE TIER 1 TIER 2 TIER 3
Under 65 29.04% 19.36% 9.68% 0%
65-69 33.88% 24.20% 14.52% 0%
70+ 38.72% 29.04% 19.36% 0%

Does everyone get the rebate?

The rebate is available to everyone who holds a green Medicare Card and has private health insurance with a registered fund. It applies to all types and levels of cover.

However, the private health insurance rebate is income tested, please refer to the above table for eligibility.

My rebate has been reduced (or stopped). Is there something I can do about this?

There's always something you can do. And the good news is you're in the right place to act. We can help you find great value cover to make up some or all of the loss.

Which portion of my income will determine my rebate entitlement?

It'll be determined by your income for Medicare Levy Surcharge purposes. This includes your taxable income, fringe benefits, superannuation contributions minus any net investment losses. If you have a spouse, your combined income will be used to calculate your rebate entitlement. Visit the Australian Taxation Office for a full overview.

What's the definition of a dependent child?

For calculating your government rebate entitlement a dependent child is:

  • Your child under 18; or
  • Your sibling under 25, who doesn't have a partner and is dependent on you for financial support on any day of the year

Health funds also have different rules and classifications for a dependent child which may impact the policies available to you. It's best to speak with us about who can be listed as a dependent child on the policy you're looking at.

How do I claim the rebate?

There are three ways to claim your rebate:

Claim upfront and reduce your premium

To receive the rebate as a premium reduction, you'll need to fill in a Government Rebate Application form. As long as you're eligible, your health fund will apply the rebate to your premium — meaning you pay less. For example, if you're eligible to receive the 30% rebate and your premium is $1,500 per year, once the rebate is applied the cost is reduced to $1,050 per year - a $450 discount.

Claim as part of your tax return

You can claim the rebate at the end of the financial year. You'll need to submit your private health insurance statement (your health fund provides this) with your tax return. Claiming your rebate this way means you will pay a higher or un-rebated premium.

FAQs about the private health insurance rebate

For more information about the Australian Government Rebate visit Medicare Australia and the Department of Health and Ageing

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