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 2019 is 0.986 and the industry weighted average premium increase for 2019 is 3.25 per cent. See the updated private health insurance rebate tiers, also provided below.
Private Health Insurance Rebate effective from 1 April 2019 to 31 March 2020
Base Tier
Tier 1
Tier 2
Tier 3
Under 65
25.059%
16.706%
8.352%
0.000%
65–69
29.236%
20.883%
12.529%
0.000%
70+
33.413%
25.059%
16.706%
0.000%