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 2020 is 0.990 and the industry weighted average premium increase for 2020 is 2.92 per cent. Read details on the private health insurance rebate. The updated rebate tiers are provided below.
Private Health Insurance Rebate effective from 1 April 2020 to 31 March 2021
Base Tier
Tier 1
Tier 2
Tier 3
Under 65
24.808%
16.539%
8.268%
0.000%
65–69
28.944%
20.674%
12.404%
0.000%
70+
33.079%
24.808%
16.539%
0.000%