Private health insurance rebate
Reduces the amount you have to pay for health insurance
To encourage more people to take out private health insurance, the Australian Government provides a rebate to make health insurance more affordable. The Australian government rebate amount is based on the age of the oldest person covered by the policy (the older the better) and by your annual earnings (the lower the better).
The table shows the current level of rebate available for different age and income levels.
2024-25 income thresholds | ||||
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $97,000 or less | $97,001 - $113,000 | $113,001 - $151,000 | $151,001 or more |
| Families | $194,000 or less | $194,001 - $226,000 | $226,001 - $302,000 | $302,001 or more |
Current rebate levels | ||||
| < age 65 | 24.608% | 16.405% | 8.202% | 0% |
| Age 65 to 69 | 28.710% | 20.507% | 12.303% | 0% |
| Age 70 + | 32.812% | 24.608% | 16.405% | 0% |
Families include single parents and couples, whether married or de facto. For families with children, the thresholds increase by $1,500 for each child after the first. Age relates to the oldest person covered by the policy.
Claiming the rebate
Most people choose to take the Australian Government rebate in the form of a premium reduction. To claim your rebate as a reduced premium, download and complete the Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium. Alternatively, you could choose to claim the rebate as a tax offset when you lodge your tax return.
Don't worry if you choose the wrong rebate tier or your income fluctuates during the year. If you receive too much, or too little, it will be reconciled by the Australian Taxation Office when you submit your tax return.
How is the rebate calculated?
It's complicated. The Government indexes the rebate annually using a calculation which represents the difference between the Consumer Price Index and the industry weighted average premium increase. What it means is that the percentage of Government rebate as a proportion of your premium will diminish over time. The Government adjusts the rebate on 1 April each year.
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