Compare policies and quotes from 30+ health funds.
What does the MLS do?
If you don't have hospital cover you'll pay:
- 1% for singles earning over $90,000 ($180,000 for families)
- 1.25% for singles earning over $105,001 ($210,001 for families)
- 1.5% for singles earning over $140,000 ($280,001 for families)
How do I avoid it?
To avoid the MLS your policy must:
- Be an appropriate level of hospital cover
- Be provided by a registered Australian health fund
- Have an excess of $500 or less for singles and $1,000 or less for all other policies
How is it calculated?
The MLS takes into consideration:
- Your taxable income
- Your total reportable fringe benefits
- Any amounts on which family trust distribution tax has been paid
Final points to keep in mind
- Extras cover does not exempt you from the MLS.
- Income thresholds for families increase by $1,500 per child after the first child
- The higher your excess, the lower your premiums
What does the LHC do?
- Adds 2% to the cost of your health insurance premium for every year that you don't have hospital cover once you turn 31
- Caps at a maximum increase of 70%
- Stays in effect until you hold hospital cover for 10 consecutive years
How do I avoid it?
- Take out an appropriate level of hospital cover
- The policy must be provided by a registered Australian health fund
How long do I have after I turn 31 to take out cover?
- The Lifetime Health Cover base day is 1 July following your 31st birthday.
Are there any special exemptions?
- Australians who were born on or before 1 July 1934
- Serving members of the Australian Defence Force (ADF)
- Department of Veterans' Affairs (DVA) Gold Card holders
- Learn more about LHC exemptions and special conditions
Why was the rebate introduced?
- To make private health insurance more accessible to Australians, especially those who are older and/or on lower incomes.
What's the eligibility criteria for the rebate?
- You must fall under the appropriate age and income thresholds
- You must be eligible for Medicare (eg be a Green or Blue Medicare cardholder)
- You can still claim the rebate with extras only cover
How do I claim the rebate?
- It can be claimed through tax when you fill out your annual return
- An easier alternative is to claim it as a premium reduction when you take out health insurance
Private health insurance rebate levels
< Age 65
< Age 65
EOFY Health Insurance Deals
Australian funds know that tax time is a popular time for buying health insurance. See what deals are on offer this EOFY?
Health insurance types
Unsure of what type of policy you need, or what's even available? Explore your health insurance options.
Health insurance for life stages
An ideal policy when you are single and 20 may not be when you are 40 and have a family, or when you are enjoying retirement.
- Bupa considering millennial-focused model
- Report: Coronary heart disease the leading cause of death in Australia
- 617,755 hospitalisations for work-related injuries funded by workers’ comp
- Health round-up: Home doctor visits, mental health and gestational diabetes
- Complaints about Australian government services on the rise
- Health round-up: Binge drinking, doctors fees and dust
Compare health insurance on finder.com.au
Get health insurance with extras and hospital cover in one policy.
Ask an Expert