How the Govt.rebate works

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

  • The government rebate is there to encourage you to get health insurance
  • The more you earn the lower your rebate will be
  • Your age and family status will also affect your rebate 

The rebate for private health insurance was put in place by the government to help people pay their premiums.

However, it is income tested – the more you earn the lower your rebate will be. It’s also affected by your age, and whether you’re single or have a family.

Sharing your tier information with your health fund

Health funds rely on you to give them the correct information about your earnings bracket and set your premium accordingly. 

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 will charge you for any shortfall in your tax. 

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

You can choose not to share your 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?

Use this chart from to find out which tier you fall into.

SINGLES < or = $90,000 $90,001 - 105,000 $105,001 - 140,000 > or $140,001
FAMILIES < or = $180,000 $180,001 - 210,000 $210,001 - 280,000 > or = $280,001
  Base tier Tier 1 Tier 2 Tier 3
< age 65 24.608% 16.405% 8.202% 0%
Age 65 - 69 28.710% 20.507% 12.303% 0%
Age 70+ 32.812% 24.608% 16.405% 0%
All ages 0.0% 1.0%

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.

Government Rebate FAQs

How can I claim or modify my rebate?

There are several ways to do this:

What if I choose an incorrect tier?

If you choose 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 tier or if your income has changed and you qualify for a different rebate tier. Please note this can only be backdated to beginning of the current tax year.

If you’d like to update your rebate, there are a few ways to do so:

Read more FAQs

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