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Private health insurance rebate
The private health insurance rebate, which is age and income tested, can take money off the cost of on your private health insurance premiums, depending on your age and income.
The private health insurance rebate applies to people with taxable incomes of under $151,001 (singles) or $302,001 (couples or families). These thresholds went up slightly on 1 July 2024.
The rebate is normally applied as a discount on your premiums, or can be applied at tax time.
For most people (aged under 65 and at the base income tier) their rebate will be around 24.6%.
What is the private health insurance rebate?
The private health insurance rebate is a government contribution to help with the cost of private health insurance. In other words, it's a a discount on your health insurance premiums.
The Australian government offers this discount to encourage more people to get private health insurance, which takes pressure of the public system (Medicare).
Depending on your income, age, family status and eligibility, you could get almost a third off the price of your premium.
Private health insurance rebate tiers (2024)
Not everybody gets the same discount. There are tiers to determine how much the government will help out.
Base Tier
Single Income: $97,000 or below Family Income: $194,000 or below
Age
Rebate
65 and under
24.608%
65 to 69
28.710%
70 and over
32.812%
Tier 1
Single Income: $97,001 to $113,000 Family Income: $194,001 to $226,000
Age
Rebate
65 and under
16.405%
65 to 69
20.507%
70 and over
24.608%
Tier 2
Single Income: $113,001 to $151,000 Family Income: $226,001 to $302,000
Age
Rebate
65 and under
8.202%
65 to 69
12.303%
70 and over
16.405%
Tier 3
Single Income: $151,001 or above Family Income: $302,001 or above
Age
Rebate
65 and under
0.000%
65 to 69
0.000%
70 and over
0.000%
These rates have come into effect as of 1 July 2024. If you are a single parent or a couple (including de facto couples), use the family tiers. For families with children, the thresholds go up by $1,500 for each child after the first.
Finder survey: What percentage of Australians have private health insurance for tax reasons?
Response
WA
VIC
SA
QLD
NSW
For tax reasons
16.04%
13.7%
10.67%
9.64%
17.25%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023 Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.
Who is eligible for the rebate?
You're eligible for the rebate if your taxable income is under $151,000 a year as a single or $302,000 as a couple or family (the threshold increases by $1,500 for every dependent child after the first). You also must:
Be a private health insurance beneficiary (for example, the dependent child of a policy-holder)
Have an income that is less than the Tier 3 threshold
How do I get the private health insurance rebate?
If you're eligible for the private health insurance rebate, you can get it one of two ways:
Through premium reductions
Your private health insurer can apply the rebate to your health insurance premiums. To claim the rebate upfront, you'll have to contact your health fund to let them know your rebate tier. Your provider applies the rebate directly to lower the cost of your premium.
In your tax return
When you lodge your yearly tax return online, you can claim your rebate as a lump sum (after paying a standard insurance premium throughout the year). The ATO can apply the rebate automatically when you enter the relevant information from your private health insurance tax statement into your tax return.
If you choose to claim the private health insurance rebate as a premium reduction, you'll be asked to select a tier based on your estimated income – usually you do this when you take out or renew a policy.
If you select a higher tier than your actual income for the year, you should receive a tax offset through your income tax return for that financial year.
If you select a lower tier than your actual income for the year, your income tax return for that financial year might come with a 'tax liability', meaning you owe money. There are no other consequences for incorrect estimates.
Why compare health insurance with Finder?
We don't ask for your phone or email to see prices.
With 1 click, you can open your results to nearly every fund in Australia.
You pay the same price as going direct – we charge no fees.
Depending on your age, you may be eligible for an
aged-based discount. This is used to estimate your
rebate.
Under 65
65 - 69
70 or older
What's your household's taxable income?
This is the combined income you and your spouse earn before tax. It's needed to calculate the correct Australian government rebate.
$93,000 and under
$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
What kind of health insurance do you need?
Combined (Extras + Hospitals)
Extras
Hospital
What level of hospital coverage would you like?
You can change this at any time later.
Legend
Covered
Restricted cover, You may be partially covered for
this category.
Not covered. Optional for insurer to include.
*Prices updated March 2024, in line with Finder's
database of health insurance policies. Prices are based
on a single individual with less than $93,000 income and
living in Sydney with a $750 excess.
What extras cover do you need? (Optional)
Select as many as you want or move to the next step
Preventative & general dental
Major dental & implants
Optical
Physiotherapy
Podiatry
Non-PBS pharmaceuticals
Chiropractic
Emergency ambulance
Remedial massage
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Why you can trust Finder's health insurance experts
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching health insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
Frequently asked questions
Your specific rebate is calculated based on your income, age, family status and eligibility.
Private health insurance is a personal decision. Benefits include being able to choose who treats you, and where. Waiting times are also typically shorter for private health insurance patients and many policies come with perks to encourage healthier lifestyles.
The private health insurance rebate was introduced on 1 January 1999. When it started, the rebate covered 30% of premiums for most Australians. This was changed when the government introduced means testing in 2012.
No, the private health insurance rebate does not affect the Medicare Levy Surcharge. The Medicare Levy Surcharge is an income tax for high earners that don't hold an adequate level of private hospital insurance. It does not affect your premiums at all.
No, the government doesn't apply the rebate to the Lifetime Health Cover Loading – a penalty that applies to anyone who takes out private health insurance after their 31st birthday.
Overseas visitors aren't entitled to the private health insurance rebate. You need to be an Australian citizen or permanent resident to be eligible for the private health insurance rebate.
Yes, you can claim the private health insurance rebate for your extras premiums. Hospital, extras and combined hospital cover are all eligible.
Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
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Gary Ross has written 725 Finder guides across topics including:
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You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching health insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
