Private health insurance rebate

The Private Health Insurance Rebate reduces your insurance premiums, making private health insurance more affordable.  It is income tested and your rebate percentage entitlement is reduced as your income increases, as shown in the following table:

From 1 April 2018 the below rebates apply:

Tier Income for Medicare levy surcharge purposes Age less than 65 Age 65-69 Age 70+
Base tier

Singles up to $90,000;

Couples/Families up to $180,000

25.415% 29.651% 33.887%
Tier 1

Singles $90,001 - 105,000;

Couples/Families $180,001 - 210,000

16.943% 21.180% 25.415%
Tier 2

Singles $105,001 - 140,000;

Couples/Families $210,001 - 280,000

8.471% 12.707% 16.943%
Tier 3

Singles more than $140,000;

Couples/Families more than $280,000

0% 0% 0%

Note: Single parents are subject to family tiers. For families with dependent children, the income thresholds increase by $1,500 for each child after the first child.

You can claim this rebate either:

  • as an automatic reduction on your premium amount, or
  • through your annual tax return (your private health insurance tax statement will indicate the amount you are eligible to claim).

You can also nominate a tier to reduce the amount of rebate you receive and change that nomination at any time.