Australian Government Rebate on Private Health Insurance

What’s the rebate on Private Health Insurance?

It’s a government initiative to help Australians afford private health insurance.

The private health insurance rebate is the amount the Australian Government contributes to your Private Health Insurance premiums, and is based on your age and income.

Most members choose to claim the rebate as a reduction in their premiums, by nominating a ‘rebate tier’ with us. Or you can claim the rebate through your annual tax return with the ATO.

Work out your rebate tier and start saving

The Australian Tax Office has announced changes to the 2023-24 income thresholds which are used to calculate the private health insurance rebate.

The table below will help you to work out the rebate that applies to you from 1 July 2023. If your income falls within the thresholds, you can nominate your rebate tier with us and start saving on your premiums.

If your income is $144,001 or more for singles (or $288,001 or more for families*) from 1 July 2023, you may not be eligible to receive a rebate at all.

Step 1: Select the income threshold that applies to you.

New income thresholds commencing 1 July 2023.
These income thresholds apply to the 2023-2024 income year.

*Single parents and couples (including de facto couples) are subject to family tiers.
The family income threshold is increased by $1,500 for each child after the first child.

Income thresholds ending 30 June 2023.
These income thresholds apply to the 2014-15 to 2022-23 income years.

*Single parents and couples (including de facto couples) are subject to family tiers.
The family income threshold is increased by $1,500 for each child after the first child.

Step 2: Use your income threshold and age to work out your ‘rebate tier’and the percentage rebate that will apply to you

Private Health Insurance Rebate effective from 1 April 2021 to 31 March 2024.

Is your rebate tier changing?
Nominating or changing your rebate tier.

You can nominate your rebate tier when you join with Health Partners or any time during your membership.

To update your rebate nomination:

• Log in to Members Online (once logged in, click on Your Cover Details >Update Rebate Tier)
• Download a form to start claiming the rebate or change your rebate tier, or
• Contact Health Partners on 1300 113 113

The rebate (%) may change on 1 April

The Australian Government reviews the rebate every year and adjusts it annually on 1 April. This means that the rebate percentages may vary from year to year. They will also vary from person to person, depending on age and income.

The rebate percentage did not change on 1 April 2023.

Things to know

• There’s no penalty for choosing the incorrect rebate tier. When you complete your income tax return, the ATO will review the rebate tier you elected against your taxable income. If you haven’t claimed enough, you’ll be reimbursed for that amount, however, you may acquire a tax debt if you have claimed too much.
• If you have a Lifetime Health Cover (LHC) loading, the rebate is not claimable on the LHC component of your premiums.
• For more details, including how to calculate your income for Private Health Insurance rebate purposes, visit ato.gov.au
• For more information on the Australia Government rebate on private health insurance visit privatehealth.gov.au and ato.gov.au