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Home / Health Insurance / Private Health Insurance Rebate Information

Australian Government Rebate – Post July 1 2013

The Australian Government Rebate is available to everyone who is eligible for a Medicare Card. The rebate was designed to help Australians cover the cost of their premiums. This is calculated based on income, age, family composition and dependent children.

What are the

Prior to 1 July 2012, the government provided a minimum 30% rebate on private health insurance regardless of income. Now the private health insurance rebate is income tested. This means the level of rebate you receive will be determined by your annual income, age and the number of dependent children you have.

What are the new rebate levels?

If you are single and earning less than $90,000 or a couple/family/single parent earning less than $180,000 you are not affected by income testing and your rebate is unchanged.

The rebate thresholds for the 2017 - 2018 financial year are:

Australian Government Rebate
NO CHANGE TIER 1 TIER 2 TIER 3
Singles Less than $90,000 $90,001–$105,000 $105,001–$140,000 $140,001+
Couples/Families/Single Parent Families Less than $180,000 $180,001–$210,000 $210,001–$280,000 $280,001+

This table shows the rebate you’ll be eligible to receive from 1 July 2017.

Australian Government Rebate
NO CHANGE TIER 1 TIER 2 TIER 3
Under 65 25.934% 17.289% 8.644% 0%
65–69 30.256% 21.612% 12.966% 0%
70+ 34.579% 25.934% 17.289% 0%

You can elect to have the Australian Government Rebate automatically applied to your premium when obtaining a quote through our health insurance partner iSelect. Get a quote now

My rebate has been reduced (or stopped). Is there something I can do about this?

There’s always something you can do and the good news is that the health insurance experts at iSelect can help. They can find great value health cover to make up some or all of the loss from the change in rebate. Get a quote now

Which portion of my income will determine my rebate entitlement?

If you have a spouse, your combined income will be used to calculate your rebate entitlement. This includes your taxable income, fringe benefits, super contributions minus any net investment losses. Visit the Australian Taxation Office for a full overview.

What’s the definition of a dependent child?

For calculating your rebate entitlement a dependent child is:

  • Your child under 21; or
  • Your sibling under 25, who doesn’t have a partner and is dependent on you for financial support on any day of the year

Health funds also have different rules and classifications for a dependent child. It’s best to speak to an expert about who can be listed as a dependent child on the policy you’re looking at. Our partner iSelecr can help, call 13 19 20.

Claiming the rebate

There are two ways to claim the rebate.

1. From your fund
You can select to have the rebate deducted from your premium cost when obtaining a quote. This reduces your upfront cost.

2. From the Australian Taxation Office
You can claim back the rebate on your tax return if you have paid the cost of your premium upfront.

For more information visit Medicare Australia and the Department of Health and Ageing.

Means testing FAQs

iSelect does not compare all policies in the market

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