About Health Insurance
- Why get Health Insurance?
- Top 6 Reasons You'll do better with iSelect
- Are you paying too much on Health Insurance?
- 5 Health Insurance hot tips
- A better way to buy health insurance
- Lifetime Health Cover Explained
- Compare your Health Insurance options with iSelect
- Health Insurance Information
- Life Stages
- Participating Health funds
- Joining a health Fund
- Means Testing
- Health Insurance & Tax
- Hospital & Extras cover
- Qantas Frequent Flyer Offer
- The Medicare Levy Surcharge (MLS)
- About the Medicare Levy Surcharge
- The Medicare Levy Surcharge and Your Tax Return
- Personal Income Tax & Health Cover
- Ways to save tax on health insurance
- The Health Insurance Rebate
- Explaining the Health Insurance Rebate
- Claiming the rebate as a reduced premium
- Claiming the rebate from a Medicare office
- Claim the rebate as part of your tax return
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.
It makes private health insurance more affordable and accessible. And it provides the opportunity to select a more comprehensive level of cover.
Recent changes to the Australian Government Rebate
Since 1999, the government has provided a minimum 30% rebate on private health insurance regardless of income. In 2012, the government made changes to the rebate. The changes included income testing the rebate against new income thresholds. This means the level of your rebate now depends on your annual income, age and the number of dependent children you have.
What are the new income thresholds?
The income thresholds for 2013–2014 are:
|NO CHANGE||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 dependent child after the first. Single parents and couples with dependent children are also subject to the family thresholds.
Which level of rebate will I get in the 2013–2014 financial year?
The majority of Australians will not be affected by income testing and their rebate will remain the same.
This table shows the rebate you’ll be eligible to receive in the 2013–2014 financial year.
|Australian Government Rebate|
|NO CHANGE||TIER 1||TIER 2||TIER 3|
Does everyone get the rebate?
Yes, 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.
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, super 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 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. 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 at a Medicare office
You can claim the rebate at any Medicare office. Just take in your account statement and photo ID and complete the Medicare Rebate Form.
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.
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