PHI 8/18 Private Health Insurance – Rebate Adjustment Factor Effective 1 April 2018

Page last updated: 05 February 2018

PDF version: PHI 8/18 Private Health Insurance – Rebate Adjustment Factor Effective 1 April 2018 (PDF 43 KB)

The Australian Government Rebate on private health insurance is annually indexed on 1 April by a Rebate Adjustment Factor (RAF) representing the difference between the Consumer Price Index (CPI) and the industry weighted average increase in premiums. The RAF calculation is set out in the Private Health Insurance (Incentives) Rules 2012 (No. 2).

The Rebate Adjustment Factor for 2018 is 0.980 and the industry weighted average premium increase for 2018 is 3.95 per cent. The updated private health insurance rebate tiers can be found on the Department's website, and are below.

Private Health Insurance Rebate effective from 1 April 2018 to 31 March 2019

Base Tier
Tier 1
Tier 2
Tier 3
Under 65
25.415%
16.943%
8.471%
0.000%
65 - 69
29.651%
21.180%
12.707%
0.000%
70+
33.887%
25.415%
16.943%
0.000%