Explore Health Insurance

Joshua MalinWritten by Joshua Malin
Reviewed by Lana Hambilton
Last updated 09/02/2024

Key takeaways

If you have a health insurance policy in Australia, you may be eligible for the private health insurance rebate. The Australian Government provides this rebate to make private healthcare more affordable for older and lower-income Australians.

  • If you’re a higher-income earner, you may only be entitled to a reduced rebate or none at all. In fact, if you’re a high-income earner without private hospital cover, you may also need to pay the Medicare Levy Surcharge (MLS).
  • Your rebate amount is only calculated against your policy’s base premiums (i.e. before any loading is applied), you can’t claim the rebate on any amount you’ve paid towards your Lifetime Health Cover loading (if applicable).
  • The Australian Government usually adjusts the rebate percentage on 1 April each year. The government’s formula considers changes to the Consumer Price Index (CPI), as well as the average increase in private health insurance premiums (which also occurs annually).

How do I calculate my rebate entitlement?

The private health insurance rebate applies as a percentage of your extras, hospital cover or combined policy premiums. However, the rebate doesn’t apply to overseas visitor health cover.

The rebate is income tested, meaning those with a lower income are entitled to a higher rebate. These tiers are current from January 2024:

Income tiersBase tierTier oneTier twoTier three
Single incomeUnder $93,000$93,001-108,000$108,001-144,000Over $144,001
Family incomeUnder $186,000$186,001-216,000$216,001-288,000Over $288,001
Rebate amount
Under 6524.608%16.405%8.202%0%
Over 7032.812%24.608%16.405%0%
Source: Privatehealth.gov.au

Single parents and couples are included in the family tiers. The income thresholds for families with dependent children are increased by $1,500 for each child after the first.

For more details, refer to the Australian Taxation Office (ATO) website or call us to speak to one of our health insurance experts.


Australian private health insurance rebate options

Man saves on private health insurance with rebate
Assuming you meet the eligibility requirements, you can claim the Australian private health insurance rebate in one of two ways.

Opt for a reduced premium

Ask your health insurer (usually when signing up) to apply your rebate as a premium reduction on your policy, if possible.

Before your insurer can do this, you’ll need to notify them of the rebate level you fall under so you can receive the correct rebate.

The annual discount on your premiums will be equal to what you would have received if you claimed your rebate at tax time. Plus, it’s one less box to tick when you file your tax return.

When choosing this option, make sure you inform your health fund if your taxable income changes, so you don’t incur any tax liabilities.

Receive the rebate as a tax offset

Claiming the private health insurance rebate is relatively straightforward if you opt to claim it as a lump sum through your annual tax return. Your insurer will provide you with a statement at the end of each financial year to help you apply for the correct rebate.

Ensure you complete your tax return and enter your private health insurance details correctly to avoid delays in receiving the rebate.

Executive General Manager of Health Life and Energy

Meet our health insurance expert, Steven Spicer

As the Executive General Manager of Health, Life and Energy, Steven Spicer is a strong believer in the benefits of private cover and knows just how valuable the peace of mind that comes with cover can be. He is passionate about demystifying the health insurance industry and advocates for the benefits of comparison when it comes to saving money on your premiums.

Steven has 20 years of experience as a people-first business leader, with a focus on creating services that put customers first.

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