Private health insurance circulars

The Private Health Insurance 30% Rebate

The Commonwealth provides a 30% Rebate on the cost of private health insurance.

The Commonwealth Government provides a 30% rebate on appropriate private health insurance cover. There are higher rebates for older people: 35% for people aged 65-69 years and 40% for people aged 70 years and over.

Anyone can claim the private health insurance rebate if they are eligible for Medicare and have a complying health insurance policy that provides hospital treatment, general treatment (‘ancillary’ or ‘extras’) cover or both.

The rebate can be 30%, 35% or 40% (as applicable) of the actual cost of premiums paid. Therefore, the rebate will increase if there is any increase in the premium.

In other words, you will get at least 30 cents back for every dollar you spend on private health insurance. For example, if your premium is $2,000 a year, you will get at least $600 back. If you are paying $1,000 you will get at least $300 back.

There are three options for receiving the Rebate:

• as a premium reduction through your private health insurer;
• as a tax rebate when lodging your annual taxation return (even if you do not have a tax liability); or
• as a direct payment from your local Medicare Office.

More information about the 30% rebate is available from Medicare Australia, the Australian Taxation Office and from all registered private health insurers.