What is the Australian Government
Rebate on private health insurance?
The Australian Government Rebate on private health insurance (Rebate) is effectively the amount that the Government contributes each year to your private health insurance premiums. The majority of people with private health insurance claim the rebate as a reduction in the amount of premiums they pay to their private health insurers
The other way to claim is 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.
Eligibility 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 a given year, you might need to repay some or the entire rebate to the Australian Tax Office after filing your annual tax return.
Rebate Percentages (1 April 2017 to 31 March 2018)
|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 || 25.934% || 17.289% || 8.644% || 0.000% |
| 65 - 69 years || 30.256% || 21.612% || 12.966% || 0.000% |
| 70+ years || 34.579% |
| 25.934% || 17.289% || 0.000% |
Rebate percentages and income test may be subject to legislative change in April and July each year. If your policy includes children, the thresholds are increased by $1,500 for each child after the first child.
Government changes to the Rebate
The Government announced that from 1 April 2014, the Government's contribution to an individual's private health insurance rebate would be 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 not eligible for the Rebate this change does not affect you. If you are eligible for the Rebate this change effectively means that the rebate percentage you receive today is going to 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 rebate is paid directly to the fund and the member has their premiums reduced. To do this, simply complete the relevant section in your membership application or fill in a Rebate Application Form and CBHS will look after the rest of the process on your behalf.