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What is the Australian Government Rebate on private health insurance?
The Australian Government Rebate on private health insurance (Rebate) is the amount the Government contributes each year to your private health insurance premiums. Most people claim the Rebate as a reduction in the premiums they pay to their private health insurer.
The other way to claim the Rebate is as a tax offset when you lodge your annual tax return. For more information about claiming your Rebate as a tax offset, visit the Australian Taxation Office (ATO) or call 132 861.
Am I eligible for the Rebate?
Your eligibility for the Rebate depends on your age and income. The higher your income, the lower the Rebate. If your income is higher than expected in any given year, you might need to repay some or all of the Rebate to the ATO after filing your annual tax return.
Rebate percentages (1 April 2020 to 31 March 2021)
|Status||Base tier||Tier 1||Tier 2||Tier 3|
|Singles||$0 - $90,000||$90,001 - $105,000||$105,001 - $140,000||$140,001+|
|Families||$0 - $180,000||$180,001 - $210,000||$210,001 - $280,000||$280,001+|
|Under 65 years||25.059%||16.706%||8.352%||0.000%|
|65 - 69 years||29.236%||20.883%||12.529%||0.000%|
Sole parents and couples (including de facto couples) are subject to family tiers. For families with children, thresholds are increased by $1,500 for each child after the first. The income thresholds are indexed and will remain the same to 30 June 2021.
Government changes to the Rebate
The Government's contribution to an individual's private health insurance Rebate is indexed annually by the lesser of the Consumer Price Index (CPI) or the actual average increase in the premium charged by insurers.
If you are eligible for the Rebate, the Rebate percentage you receive today will be reduced every year that the average increase of premiums for all insurers is higher than the CPI.
Claiming the Rebate
Most people claim this Rebate as a reduction in their insurance premiums. The Government pays the Rebate directly to the fund and the member has their premiums reduced. To claim the Rebate as a reduction in your insurance premium, simply complete the relevant section in your membership application or fill in a Rebate Application Form and we will look after the rest of the process on your behalf.