The Australian Government Rebate on private health insurance (the 'rebate') helps you cover the cost of your private health insurance by reducing your premium.

The percentage of rebate you are entitled to is dependent on age and income.

2014 Government rebate change

From 1 April 2014 the Australian Government changed how your rebate is calculated. The Government’s contribution to an individual’s private health insurance rebate is adjusted on 1 April each year. This rebate change applies to all Australian private health funds insurers. Please see http://www.health.gov.au/internet/main/publishing.nsf/Content/health-phicirculars2014-27

Please note: this only affects you if you currently receive the rebate.

The table below shows what income tier you are in. We recommend using the Australian Tax Office calculator to work out your income.


Income thresholds for the 2014/15 financial year

Income

Type of member

No Tier

Tier 1

Tier 2

Tier 3

Singles

< $90,001

$90,001 - $105,000

$105,001 - $140,000

> $140,000

Families

< $180,001

$180,001 - $210,000

$210,001 - $280,000

> $280,000

Australian Government Rebate

AGE

NO TIER

TIER 1

TIER 2

TIER 3

UNDER 65

29.040%

19.360%

9.680%

0%

65 – 69

33.880%

24.200%

14.520%

0%

70+

38.720%

29.040%

19.360%

0%

Claiming the rebate

There are 2 ways to claim the rebate:

  • As a reduction on your health insurance premium – this means you pay less up front.
  • As a tax offset when lodging your annual tax return.

If you claim your rebate through your insurer, you can nominate the income tier you expect to be in and they will adjust your rebate accordingly.

Why keep private health insurance?

There are good financial and medical reasons for keeping private health insurance :- freedom of choice of your own doctor, and the peace of mind that having health cover gives you and your family.

If you decide to drop your hospital cover, you may have to pay the Medicare Levy Surcharge, which could end up costing you more.

Also, remember that to avoid paying the Lifetime Health Cover loading, you need to maintain your hospital cover over the age of 31.

Learn more about the great range of additional benefits included with HCF Health Insurance today.

For further information

Please read our Australian Government Rebate FAQs or contact us.