Private health insurance rebate
The Australian Government provides an income tested rebate to help people meet the cost of private health insurance.
A person may claim the private health insurance rebate if they:
- are eligible for Medicare;
- have a complying health insurance product (CHIP) that provides hospital treatment, general treatment (also known as ancillary or extras) cover or both; and
- have an income for Medicare levy surcharge purposes below Tier 3 shown in the table below.
To work out the level of rebate for which you are eligible use the table below.
Private health insurance rebate for the 2013-14 financial year
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first. The Lifetime Health Cover (LHC) component of a premium is not eligible for the private health insurance rebate.
|Base Tier||Tier 1||Tier 2||Tier 3|
|Singles||$88,000 or less||$88,001 - 102,000||$102,001 - 136,000||$136,001 +|
|Families||$176,000 or less||$176,001 - 204,000||$204,001 - 272,000||$272,001 +|
|65 - 69||35%||25%||15%||0%|
The tiers are based on your income for Medicare levy surcharge purposes.
To work out which tier you are in, use the Australian Taxation Office calculator
There are two ways you can claim your rebate:
- as a premium reduction through your private health insurer (you pay less upfront to your insurer). If you want to claim your rebate as a reduced premium, contact your insurer.
- as a tax offset when lodging your annual tax return. For more information about claiming your rebate as a tax offset, visit the Australian Taxation Office or call 132 861.
If you choose to receive your rebate through your insurer you should nominate the tier you expect to be in to avoid a potential tax liability.
If you or your family don’t have hospital cover, or you choose not to maintain your cover, you may have to pay the Medicare levy surcharge.
If you have more questions about the private health insurance rebate, see frequently asked questions
From 1 April 2014, a person’s rebate contribution from the Australian Government will increase based on a weighted average ratio. The weighted average ratio is determined using a formula which takes into account growth in the Consumer Price Index and the industry weighted average premium increase.
Under the current legislation
, an industry level approach applies through the use of the weighted average ratio. The weighted average ratio will result in 96.8% of the premium paid (excluding Lifetime Health Cover loadings) attracting a rebate.
The change will come into effect on 1 April 2014 and will apply to any premium payments that are made on or after that date.
The rebate will continue to be paid as a percentage of premiums paid, excluding any Lifetime Health Cover loading that may be applicable.