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 tier from the one you’re in, there’s no penalty from your health fund or the government. But come 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 to the one you should be in, you’ll get a refund.

You can choose not to share your tier information, pay a standard health insurance premium and claim your rebate in a lump sum when you lodge your 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 25.059%
Age 65 - 69 29.236%
Age 70+ 33.413%
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.

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