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Health Insurance Rebate Frequently Asked Questions

Who is eligible for the Federal Government Rebate on Private Health Insurance?
What if the cost of my private health insurance increases if I change to a higher cover?
If I don't pay tax (e.g. a pensioner or student) am I still eligible for the Federal Government Rebate on Private Health Insurance?
Is the Federal Government Rebate on Private Health Insurance income tested?
Why not just make premiums tax deductible?
Where can I get more information about the Rebate?

Important note: The information on this page has been sourced from Health Funds, the Department of Health and Ageing and the Australian Taxation Office (ATO) and is subject to change. While we take great care to provide accurate and detailed advice to clients, the following information should be used as a general guide only.

Who is eligible for the Federal Government Rebate on Private Health Insurance?

To be eligible for the government rebate, you must be eligible for Medicare, have an income for surcharge purposes below the Tier 3 threshold and have joined a registered health fund.

What if the cost of my private health insurance increases if I change to a higher cover?

The rebate value is percentage based and therefore will keep pace with any cost increases.

How do I get the rebate?

There are 3 ways to get the Government Rebate on Private Health Insurance. You can:

  • ask your Health Fund to provide it as a premium discount (by completing the rebate section of your application form) reducing your upfront costs.

  • claim it back on your tax (you will receive a statement from your Health Fund in June/July of each year to assist with your tax return).

  • receive a direct payment from the Government through your local Medicare office.

These three methods apply regardless of whether you pay your premiums monthly, yearly, in instalments or in advance.

If I don't pay tax (e.g. a pensioner or student) am I still eligible for the Federal Government Rebate on Private Health Insurance?

Yes. The Government Rebate is not just for tax payers. It's for everyone who pays for private health insurance. If you don't pay tax - or only have a small taxable income - you can still get the rebate as a premium discount from your health fund, as a direct payment from the Government or as a refundable tax rebate.

Is the Federal Government Rebate on Private Health Insurance income tested?

Yes. If you have a higher income your rebate entitlement may be reduced or you may not be entitled to any rebate at all. To find out if you are eligible to receive the Government Rebate click here.

Why not just make premiums tax deductible?

Under the new tax system, the Government Rebate on Private Health Insurance is as, if not more, generous than full income tax deductibility on premiums for around 80 per cent of people. Just making the rebate available as a tax deduction would discriminate against people who do not pay tax or have only a small taxable income.

Where can I get more information about the Rebate?

More information is available by calling HICA on 1300 732 757, the Department of Health and Ageing on 1800 020 103 or from all registered private health funds and Medicare offices.