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.
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 government changed the Rebate percentages on 1 April 2025 and will change the income thresholds on 1 July 2025.
The following tables show the Rebate percentages for each income tier (effective 1 July 2025 to 31 March 2026).
Income thresholds and rates for singles
Base Tier
Income: $101,000 or below
Medicare levy surcharge: 0.0%
| Age | Rebate |
|---|---|
| 64 and under | 24.288% |
| 65 to 69 | 28.337% |
| 70 and over | 32.385% |
Tier 1
Income: $101,001 to $118,000
Medicare levy surcharge: 1.0%
| Age | Rebate |
|---|---|
| 64 and under | 16.192% |
| 65 to 69 | 20.240% |
| 70 and over | 24.288% |
Tier 2
Income: $118,001 to $158,000
Medicare levy surcharge: 1.25%
| Age | Rebate |
|---|---|
| 64 and under | 8.095% |
| 65 to 69 | 12.143% |
| 70 and over | 16.192% |
Tier 3
Income: $158,001 or above
Medicare levy surcharge: 1.5%
| Age | Rebate |
|---|---|
| 64 and under | 0.000% |
| 65 to 69 | 0.000% |
| 70 and over | 0.000% |
Income thresholds and rates for families
Base Tier
Income: $202,000 or below
Medicare levy surcharge: 0.0%
| Age | Rebate |
|---|---|
| 64 and under | 24.288% |
| 65 to 69 | 28.337% |
| 70 and over | 32.385% |
Tier 1
Income: $202,001 to $236,000
Medicare levy surcharge: 1.0%
| Age | Rebate |
|---|---|
| 64 and under | 16.192% |
| 65 to 69 | 20.240% |
| 70 and over | 24.288% |
Tier 2
Income: $236,001 to $316,000
Medicare levy surcharge: 1.25%
| Age | Rebate |
|---|---|
| 64 and under | 8.095% |
| 65 to 69 | 12.143% |
| 70 and over | 16.192% |
Tier 3
Income: $316,001 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 dependant 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:
- logging in to the My Membership app, going to Manage Payments, then Government Rebate
- logging in to online member services, going to My Cover, then Government Rebate
- completing the Australian Government Rebate form and emailing it to join.cancel@hcf.com.au
- visiting your local HCF branch
- calling us on 13 13 34 (Mon to Fri: 8am to 8pm, Sat: 9am to 5pm AEST/AEDT).
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.
For more information on the Rebate, visit the ATO website.
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