If you have health insurance, you may be eligible for the Australian Private Health Insurance Rebate. This means that every year, you’ll need to claim the rebate back from the government, which might sound intimidating to some.
Don’t worry – it’s a simple process! You can claim the Australian private health insurance rebate in one of two following ways:
- Opt for a discounted premium. Organise with your health insurer (usually when signing up) to have your premium discounted. You’ll need to notify your health fund of the income bracket you fall into so you can receive the correct discount, as well as inform them when your financial situation changes (so you don’t incur any tax liabilities). The annual discount is equal to what you would have received through a tax rebate. Plus, it’s one less box to tick when you file your tax return!
- Receive the rebate through your tax return. Don’t worry; claiming the Private Health Insurance rebate is relatively straightforward if you opt to claim yours through your annual tax return. For one, your insurer provides you with a statement at the end of each financial year that will help you apply for the correct rebate. As with option one, just be wary when your financial situation changes.
How do I calculate my rebate entitlement?
You can find all the tiers and claim conditions on our Australian Government Rebate page. If your question is not answered there, we suggest you look at the Australian Taxation Office’s relevant web page, or call the ATO on 132 861.
Things to remember about your health insurance rebate
- Higher income earners may only be entitled to a reduced rebate. In fact, they may not be entitled to any rebate at all.
- If you or your family do not have an appropriate level of private hospital cover, and your income for Medicare Levy Surcharge (MLS) purposes is above a certain threshold, you will be required to pay the MLS.
Ready to claim your rebate? You first need private health cover! Compare health insurance on our site, or give us a call to discuss your options.