If you're eligible, the Australian Government rebate helps reduce what you pay for health cover. Here's how the private health insurance rebate tiers work, how to find yours and what to do if your circumstances change.
The Australian Government rebate is a contribution towards the cost of eligible private health insurance premiums, including hospital and extras cover. The amount you receive depends on your income, family circumstances and, under the current rates, the age of the oldest person covered by your policy.
You need to meet the eligibility requirements, including being eligible for Medicare and holding a complying policy with a registered Australian health insurer. Higher income tiers receive a lower rebate, with no rebate available in Tier 3.
On 1 April 2026, the base-tier rebate for policies where the oldest person covered is under 65 reduced from 24.288% to 24.118%. This can affect what you pay, separately from any change to your health fund's premiums.
The Government generally adjusts rebate percentages on 1 April using a rebate adjustment factor. This takes into account changes in the Consumer Price Index (CPI) and the industry weighted average premium increase.
If you're eligible, you can claim the rebate as a reduction in your premiums through us, or as a refundable tax offset when you lodge your annual tax return with the Australian Taxation Office (ATO).
Start with your expected income for rebate purposes and your family circumstances, then check the age bracket that applies to your policy. The private health insurance rebate thresholds below apply to the 2026-27 financial year. The rebate percentages shown apply from 1 July 2026 to 31 March 2027.
Just a heads up: the rebate is 0% above $164,000 for singles or $328,000 for families. The family income thresholds increase by $1,500 for each eligible dependent child after the first.
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
Singles | $105,000 or less | $105,001 to $123,000 | $123,001 to $164,000 | $164,001 or more |
| Families* | $210,000 or less | $210,001 to $246,000 | $246,001 to $328,000 | $328,001 or more |
| Medicare Levy Surcharge | ||||
| All ages | 0.0% | 1.0% | 1.25% | 1.5% |
*Single parents and couples (including de facto couples) fall under the family threshold. If you have children, your threshold increases by $1,500 for every child after the first.
These income tiers also help determine Medicare levy surcharge rates. This is separate from the rebate and may apply if your income is above the relevant threshold and you don't have appropriate private hospital cover.
| Rebate if the oldest person covered by the policy is: | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 years old | 24.118% | 16.079% | 8.038% | 0% |
| 65-69 years old | 28.139% | 20.098% | 12.058% | 0% |
| 70 years old and over | 32.158% | 24.118% | 16.079% | 0% |
Use the age of the oldest person covered by your policy. Under these current rates, policies with someone aged 65 or over receive a higher rebate in the Base Tier, Tier 1 and Tier 2.
You can nominate your rebate tier when you join with Health Partners or change it any time during your membership. To make changes to yours, head to the Health Partners app or call our local team on 1300 113 113 and we’ll give you a hand.
It's worth checking your nominated tier when your expected income or family circumstances change. Keeping it up to date can help reduce the difference between the rebate you receive upfront and your final entitlement at tax time.
Income thresholds are updated on 1 July. Rebate percentages are generally adjusted on 1 April, so different percentages can apply to premiums paid within the same financial year.
The Government has announced a proposed change from 1 April 2027 that would remove the higher age-based rebates, subject to legislation passing Parliament. The rates shown above apply until 31 March 2027. Check the latest Government information before relying on rates for a later period.
This information is general and isn't personal tax advice. Speak with a registered tax professional if you're unsure how the rules apply to you.
See what your cover could cost
Get a quote to see your cover options and what you could pay with your eligible Government rebate included. If you'd like a hand, call us on 1300 113 113.
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30-day cooling-off — make sure we’re the right fit
Caring for South Australia’s health for over 85 years
© Copyright Health Partners. 2026 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.
© Copyright Health Partners. 2026 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.
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