THE GOVERNMENT REBATE

HOW THE GOVERNMENT REBATE WORKS

If you have private health insurance, you may be eligible to receive the Australian Government Rebate to help towards your premium.

Each year health funds review their policies and announce any changes to health cover premiums. This includes announcing adjustments resulting from changes to the Australian Government's Rebate (Rebate) on private health insurance.

The Rebate was put in place to encourage Aussies to get health insurance and help people pay their premiums. The Rebate amount is calculated based on your income, age and family status. It’s usually adjusted annually on 1 April based on the Consumer Price Index (CPI) and the average premium increase across all health funds. This year, the Rebate will stay the same until 1 April 2025.

SHARING YOUR INCOME TIER INFORMATION WITH YOUR HEALTH FUND

Health funds rely on you to give them the correct information about your earnings bracket so they can set your premium amount correctly.

If you choose a lower income tier than the one you’re in and claim a higher Rebate than your yearly income allows, there’s no penalty from your health fund. But at tax time, the Australian Tax Office (ATO) will charge you for any shortfall in your tax.

Equally, if you inadvertently put yourself in a higher income tier than the one you should be in, you’ll likely get a refund from the ATO.

You can choose not to share your income tier, or pay a standard health insurance premium throughout the year and claim your Rebate entitlement in a lump sum when you lodge your yearly tax return.

Which rebate tier are you in?

The income tiers changed on 1 July 2023. Use this chart to find out which Rebate tier you fall into. The government may adjust the Rebate percentage on 1 April each year. This year, the Rebate will stay the same until 1 April 2025.

Single Rebate Tier
From 1 July 2023

Base

Income: $93,000 or below
Medicare levy surcharge: 0.0%

Age Rebate
64 and under 24.608%
65 to 69 28.710%
70 and over 32.812%

Tier 1

Income: $93,001 to $108,000
Medicare levy surcharge: 1.0%

Age Rebate
64 and under 16.405%
65 to 69 20.507%
70 and over 24.608%

Tier 2

Income: $108,001 to $144,000
Medicare levy surcharge: 1.25%

Age Rebate
64 and under 8.202%
65 to 69 12.303%
70 and over 16.405%

Tier 3

Income: $144,001 or above
Medicare levy surcharge: 1.5%

Age Rebate
64 and under 0.000%
65 to 69 0.000%
70 and over 0.000%

Family Rebate Tier
From 1 July 2023

Base Tier

Income: $186,000 or below
Medicare levy surcharge: 0.0%

Age  
64 and under 24.608%
65 to 69 28.710%
70 and over 32.812%

Tier 1

Income: $186,001 to $216,000
Medicare levy surcharge: 1.0%

Age  
64 and under 16.405%
65 to 69 20.507%
70 and over 24.608%

Tier 2

Income: $216,001 to $288,000
Medicare levy surcharge: 1.25%

Age  
64 and under 8.202%
65 to 69 12.303%
70 and over 16.405%

Tier 3

Income: $288,001 or above
Medicare levy surcharge: 1.5%

Age Rebate
64 and under 0.000%
65 to 69 0.000%
70 and over 0.000%

Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first. Learn more about the Medicare levy surcharge

Government Rebate FAQs

How do I claim or modify my Rebate?

You can claim or modify your Rebate by:

What if I choose an incorrect income tier?

If you claim a Rebate that doesn’t match your income, you'll likely either get a refund or pay the difference at tax time.

Your Rebate can be easily updated if you choose an incorrect income tier or if your income has changed and you qualify for a different Rebate tier. Please note this can only be backdated to the beginning of the current tax year.

Read more FAQs

For more information on the Rebate, visit the ATO website.

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