The private health insurance rebate is a government initiative to help Australians pay their health insurance premiums by subsidising a portion of their premiums. This government rebate can either be claimed through your tax return or in the form of a reduced policy premium.
The rebate was introduced as an incentive for people to take out private health insurance. The more people who have health insurance, the less pressure there is on our public healthcare system (Medicare). This will assist in, saving the government money and reduce lengthy public waiting lists.
The rebate you’re entitled to will depend on your age and you and your family’s taxable income. You must be eligible for Medicare (e.g. hold a blue or green Medicare card) to receive the rebate, in addition to holding any private health insurance policy.
|Base Tier||Tier 1||Tier 2||Tier 3|
|Singles||Under $90,000||$90,001-$105,000||$105,001-$140,000||$140,001 +|
|Families*||Under $180,000||$180,001-$210,000||$210,001-$280,000||$280,001 +|
|70 and over||33.079%||24.808%||16.539%||0.00%|
|Retrieved from PrivateHealth.gov.au | Information current as of 17/09/2020|
* For families with children, thresholds increase by $1,500 for each child after the first. Families include couples, de facto couples, and single parents.
If you claimed in a lower-income tier, you will have to pay back the difference during tax time, since you would have received a higher percentage rebate than you should have been receiving.
If you claimed in a higher income tier, you should be able to receive the remaining balance of your rebate through your tax return, since you would have received a lower percentage rebate than you should have been receiving.
The family tiers apply if you have dependent children, but these tiers will only consider the income of the adults. The income threshold won’t be affected if you have one child; however, every additional child will increase the threshold by $1,500. So if you have two children, the base tier will increase to $181,500 for your family, and other tiers will also adjust accordingly.
If your health insurance is paid by your employer, you’ll typically be able to claim the government rebate as a reduced premium.²
No, only policies from approved Australian providers are eligible for a rebate.
When it comes to family tiers, age is based on the oldest person covered. So if you are under 65, and you have a partner that’s between 65 and 69, you can claim rebates from the 65-69 tier.
Even if you have separate policies, you will still be considered a family for income tier purposes.
Yes – as long as you pay for your dependent child’s health cover, you can still receive a government rebate. The same family income tiers will apply.