How to claim your private health insurance rebate
Are my premiums eligible for the Australian Government rebate?
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.
The private health insurance rebate applies as a percentage of your extras cover, hospital cover or combined policy base premiums. However, the rebate doesn’t apply to overseas visitor health cover.
Private health insurance rebate tiers
The rebate is income tested, meaning those with a lower annual income are entitled to a higher rebate. The rebates are outlined in the table below:
| Income tiers | Base tier | Tier one | Tier two | Tier three |
|---|---|---|---|---|
| Single income | Under $97,000 | $97,001-113,000 | $113,001-151,000 | Over $151,001 |
| Family income | Under $194,000 | $194,001-226,000 | $226,001-302,000 | Over $302,001 |
| Rebate amount | ||||
| Under 65 | 24.288% | 16.192% | 8.095% | 0% |
| 65-69 | 28.337% | 20.240% | 12.143% | 0% |
| Over 70 | 32.385% | 24.288% | 16.192% | 0% |
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Source: privatehealth.gov.au. Current from 1 April 2025 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. |
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For more details, refer to the Australian Taxation Office (ATO) website or call us to speak to one of our health insurance experts.
Australian Government health insurance rebate options
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
When signing up, you can usually opt to apply your rebate as a premium reduction on your private health cover policy.
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 experience any surprises at tax time.
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.
What is excess private health insurance entitlement?
Excess private health entitlement refers to when someone gets a higher private health insurance rebate than they’re entitled to. Once you’ve submitted your income tax return at the end of the financial year, the ATO will compare your actual income to the estimated income you used to claim the rebate. If you’ve over-claimed, you’ll need to pay back the difference (rebate reduction). However, if you’ve underclaimed, you’ll receive a rebate refund.
For more information, check the ATO website or chat with one of our health insurance experts.
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.