The Australian Government Rebate on private health insurance (PHI) is indexed annually 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 (average premium increase). The RAF calculation is set out in the Private Health Insurance (Incentives) Rules 2012 (No. 2).
The RAF for 2025 is 0.987, which means there will be a change to the Rebate percentages on 1 April 2025. The PHI Rebate percentages for each income tier for 1 April 2025 to 31 March 2026 are as follows:
| Age group | Base Tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.288% | 16.192% | 8.095% | 0.000% |
| 65 – 69 | 28.337% | 20.240% | 12.143% | 0.000% |
| 70+ | 32.385% | 24.288% | 16.192% | 0.000% |
The Commonwealth Ombudsman’s Private Health website has more information on the Private Health Insurance Rebate.