The private health insurance rebate is an discount on your health insurance premiums. The Aussie government uses the rebate as a way to try and encourage people to take out private health insurance.
The rebate factors in your age, family status and income. The table below lists the private insurance rebate tiers that came into force on July 1st 2023.
| Singles | ≤$93,000 | $93,001-108,000 | $108,001-144,000 | ≥$144,001 |
|---|---|---|---|---|
| Families | ≤$186,000 | $186,001-216,000 | $216,001-288,000 | ≥$288,001 |
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
| < age 65 | 24.608% | 16.405% | 8.202% | 0% |
| Age 65-69 | 28.710% | 20.507% | 12.303% | 0% |
| Age 70+ | 32.812% | 24.608% | 16.405% | 0% |
You're eligible for the rebate if your taxable income is under $144,000 a year as a single or $288,000 as a couple or family (the threshold increases by $1,500 for every dependent child after the first). You also must:
If you're eligible for the private health insurance rebate, you can get it one of two ways:
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.
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.
Unlike the Medicare Levy Surcharge, you can claim the rebate for any insurance policy, whether that's extras cover, hospital cover or a combined package.
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.
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