How the Govt.rebate works

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If you have health insurance, you may be eligible to receive the Australian Government Rebate to help towards your premium.

Each year health funds review their policies and announce any changes to health cover premiums. This includes announcing adjustments resulting from the Australian Government's Rebate on private health insurance. 

The government rebate on private health insurance was put in place to encourage Aussies to get health insurance and help people pay their premiums. The rebate amount is calculated based on your income, age and family status. It’s adjusted annually on 1 April based on the Consumer Price Index (CPI) and the average premium increase across all health funds. This year the government rebate on private health insurance will stay the same from 1 April 2022 to 31 March 2023.

Additionally, as Australia's largest not-for-profit health fund, we put people before profit and the health and wellbeing of the 1.7 million Aussies we cover before anything else. That's why last October, we announced that we’re freezing our premiums at current rates until 1 November 2022 to continue to provide relief to our members during the COVID-19 pandemic. This brings our total financial support for members to $150 million, including 2 premium rate freezes and premium relief to more than 71,000 members experiencing financial hardship.

Sharing your income tier information with your health fund

Health funds rely on you to give them the correct information about your earnings bracket and set your premium accordingly. 

If you choose a lower income tier than the one you’re in and claim a higher rebate than your yearly income allows, there’s no penalty from your health fund. But at tax time, the Australian Tax Office (ATO) will charge you for any shortfall in your tax. 

Equally, if you inadvertently put yourself in a higher income tier than the one you should be in, you’ll likely get a refund. 

You can choose not to share your income tier, or pay a standard health insurance premium throughout the year and claim your rebate entitlement in a lump sum when you lodge your yearly tax return. 

Which rebate tier are you in?

Use this chart from privatehealth.gov.au to find out which tier you fall into. The government adjusts the rebate percentage on 1 April each year. Though from 1 April 2022, the Australian Government's Rebate on private health insurance will stay the same.

Singles rebate tier

Base Tier: Income of $90,000 or below
Medicare levy surcharge: 0.0%

  • Aged 65 and under: 24.608%
  • Aged 65–69: 28.710%
  • Aged 70 and over: 32.812%

Tier 1: Income of $90,001 – 105,000
Medicare levy surcharge: 1.0%

  • Aged 65 and under: 16.405%
  • Aged 65–69: 20.507%
  • Aged 70 and over: 24.608%

Tier 2: Income of $105,001 – 140,000
Medicare levy surcharge: 1.25%

  • Aged 65 and under: 8.202%
  • Aged 65–69: 12.303%
  • Aged 70 and over: 16.405%

Tier 3: Income of $140,001 or above
Medicare levy surcharge: 1.5%

  • All ages: 0%

Family rebate tier

Base Tier: Income of $180,000 or below
Medicare levy surcharge: 0.0%

  • Aged 65 and under: 24.608%
  • Aged 65–69: 28.710%
  • Aged 70 and over: 32.812%

Tier 1: Income of $180,001 – 210,000
Medicare levy surcharge: 1.0%

  • Aged 65 and under: 16.405%
  • Aged 65–69: 20.507%
  • Aged 70 and over: 24.608%

Tier 2: Income of $210,001 – 280,000
Medicare levy surcharge: 1.25%

  • Aged 65 and under: 8.202%
  • Aged 65–69: 12.303%
  • Aged 70 and over: 16.405%

Tier 3: Income of $280,001 or above
Medicare levy surcharge: 1.5%

  • All ages: 0%

Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.

Government Rebate FAQs

How can I claim or modify my rebate?

There are several ways to do this:

What if I choose an incorrect income tier?

If you claim a rebate that doesn’t match your income, you'll likely either get a refund or pay the difference at tax time.

Your rebate can be easily updated if you choose an incorrect income tier or if your income has changed and you qualify for a different rebate tier. Please note this can only be backdated to the beginning of the current tax year.

Read more FAQs

For more information on the Australian Government’s Rebate on private health insurance, visit the ATO’s website.

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