Important note: The information provided on this website does not constitute financial advice or tax advice. If you require financial or tax advice about your specific situation, you should contact your financial advisor or a tax expert.

What is the Federal Government Rebate on Private Health Insurance?

The Federal Government Rebate is a subsidy of the cost for hospital and extras covers that are Complying Health Insurance Products.

The rebate is applicable to the cost of private health insurance premiums on hospital cover, extras cover and a combination of both.

The eligibility for a rebate (if any) is determined by the policyholder’s income and age.

What level of rebate am I entitled to?

The level of rebate on a policy is determined by the age of the oldest person covered under the policy and the income of the individual / family. The rebate is applied to the total premium of the policy, and is adjusted by the government annually.

Private Health Insurance Rebate and Medicare Levy Surcharge effective from 1 July 2024

Source: Australian Tax Office. These thresholds apply to individuals from 1st July 2024. The threshold increases annually based on projected growth in Average Weekly Ordinary Time Earnings (AWOTE). There are specific rules for calculating income for Medicare Levy Surcharge purposes. For more information visit The Australian Tax Office.



Private Health Insurance Rebate


Thresholds from 1 April 2021

 Below 65 years 65 to 69 years 70 years or over  

No tier

Singles - $0 - $97,000


28.710% 32.812%  

Families - $0 - $194,000


Tier 1

Singles - $97,001 - $113,000


20.507% 24.608%  

Families - $194,001 - $226,000


Tier 2

Singles - $113,001 - $151,000


12.303% 16.405%  

Families - $226,001 - $302,000


Tier 3

Singles - $151,001 +


0% 0%  

Families - $302,001 +


NOTE: Families include couples and sole parent families.

The family income threshold increases by $1500 for each dependent child after the first.

Previous Rebate Tiers are available here.

How to calculate income for the purposes of determining a rebate tier

The rebate income test uses the same principle as when calculating income for MLS purposes. Income for surcharge purposes includes:

For more information, see income test information and calculators on the Australian Tax Office (ATO) website or call the ATO on 13 28 61.

How to determine if your rebate tier is based on a family or a single

Persons covered

Who is eligible to claim the rebate?

How much are they eligible for?

Who is income tested?

Single adult

Single adult on the policy

Whole rebate

Single adult on the policy with respect to the single tier thresholds.

Single parent family

Single parent on the policy

Whole rebate

Single parent on the policy with respect to the family tier thresholds. The thresholds increase by $1,500 for each child after the first.


Both adults on the policy

Each is entitled to one half of the rebate. Or one member of the couple may elect to receive the benefit on behalf of their spouse.

Both adults on the policy with respect to the family tier thresholds. The thresholds increase by $1,500 for each child after the first.

* Income of dependent children is not included for both family and single parents. Source: Fairer Private Health Insurance Incentives Bill 2011, Explanatory Memorandum.

How do I claim the rebate?

People can choose to receive the rebate in the method that suits them best. They can receive the rebate as:

The rebate is provided as a percentage of total premiums and therefore keeps pace with any future increases in individual funds or product premiums.