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 privatehealth.gov.au to find out which tier you fall into.

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.