Changes to the Australian Government Rebate on private health insurance income thresholds

The Australian Government Rebate on private health insurance is designed to help reduce the cost of premiums, and encourage Australians to take out, and keep, their private health cover. This rebate is income tested, and most people claim the rebate as a reduction in the premiums they pay to their health fund. The other way to claim the rebate is as a tax offset when you lodge your annual tax return.

For the first time in eight years, the income thresholds for the rebate will be increasing. This means that depending on your income level, you may benefit from a higher rebate.

From 1 July 2023, the new income thresholds will be as follows:

What do you need to do?

You’ll need to check whether your rebate tier will change, based on the new income thresholds. If you need to update your tier, you’ll be able to do this in the Member Centre or by calling us, from 1 July 2023.

Medicare Levy Surcharge

These income thresholds are also used to calculate the Medicare Levy Surcharge, which is a levy Australians pay if they earn above a certain income and do not have private Hospital cover. This is calculated when you submit your tax return each year, and you’ll be advised on any surcharge you need to pay when you receive your notice of assessment from the Australian Tax Office (ATO).

More information and help

Please check out our FAQs on this change. You can also find more details of these changes at the following Australian Government websites.

• Private health insurance rebate
• Medicare Levy Surcharge

If you still have questions, you can get in touch with us on help@cbhs.com.au or 1300 654 123 (8am-7pm AET) Monday-Friday.