Government rebates

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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 table below will help you to work out the rebate that applies to you from 1 April 2020.

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 more than $140,000 (or $280,000 for families*), you may not be eligible to receive a rebate at all.

Step 1: Select the income threshold that applies to you.
Singles	$90,000 or less	$90,001-105,000	$105,001-140,000	$140,001 or more
Families*	$180,000 or less	$180,001-210,000	$210,001-280,000	$280,001 or more
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 2020 to 31 March 2021
Your rebate tier	Base Tier	Base Tier 1	Base Tier 2	Base Tier 3
Under 65	25.059%	16.706%	8.352%	0%
Aged 65-69	29.236%	20.883%	12.529%	0%
Aged 70+	33.413%	25.059%	16.706%	0%
Note: Circular PHI 7/20 (Private Health Insurance – Rebate Adjustment Factor Effective 1 April 2020) has been repealed and removed. *The family income threshold is increased by $1,500 for each child after the first child.

Nominating your rebate tier

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

You can also change your nominated rebate tier:

via Members Online (once logged in, click on Your Cover Details >Update Rebate Tier)
by downloading the Rebate Tier Nomination Form, or
by contacting Health Partners on 1300 113 113.

The rebate (%) will 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 will vary from year to year. They will also vary from person to person, depending on age and income.

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

Rebate