Australian Government Rebate on Private Health Insurance

What’s the rebate on Private Health Insurance?

The Government Rebate is the amount the Australian Government contributes to your private health insurance premiums. It reduces the out-of-pocket cost of premiums for policyholders and is income-tested so that the more you earn, the lower your rebate is. The Government reviews this rebate independently of health funds and adjusts it annually on 1 April.

From 1 April 2025, the base tier rebate will reduce from 24.608% to 24.288%. That means you may still experience an increase in the amount you pay, based on the reduction in the Government rebate.

It’s adjusted because of a few variables. With rising medical costs and an ageing population, health insurance premiums can increase, and the federal government wants to control how much it spends on the rebate, so it is indexed every year.

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 Australian Tax Office (ATO).

Work out your rebate tier and start saving

The Australian Tax Office announced changes to the 2025-26 income thresholds which are used to calculate the private health insurance rebate.

The rebate percentage has changed on 1 April 2025.

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

If your annual income is $158,001 or more for singles (or $316,001 or more for families*), you may not be eligible to receive the private health insurance rebate.

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

*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 2025.
These income thresholds apply to the 2024-25 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.

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 2025 to 31 March 2026.

Private Health Insurance Rebate effective from 1 April 2024 to 31 March 2025.

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:

• Download a form to start claiming the rebate or change your rebate tier, or
• Contact Health Partners on 1300 113 113

The rebate (%) has changed on 1 April 2025

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.

Things to know

• We always recommend that our members seek independent professional advice on matters that relate to your tax and how your Health Partners membership or private health insurance cover could impact this.
• 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 Australian Government rebate on private health insurance visit privatehealth.gov.au and ato.gov.au