What is the Australian Government Rebate on Private Health Insurance?

The Australian Government Rebate helps to make private health insurance more affordable by paying an amount towards your health insurance to reduce your premiums (depending on your eligibility, age and income levels). This rebate applies to both hospital and extras cover, so even if you’ve got an extras only policy, you can still save money.

Australian Government Rebate


EARNING < $140K?
OR $280K FOR


Most Australians receive a
rebate to help reduce the
cost of their health cover

Rebate Premiums




Spread your savings
through the year to help
your budget

Rebate Tax Time




Or you can apply
the full rebate as
a credit at tax time

Do you qualify for the rebate?

The rebate is income tested, and is available to

  • Singles earning $140,000 or less
  • Couples and families earning $280,000 or less

If you have dependent children, your threshold increases by $1500 for each child after the first. To determine whether your child is a ‘dependent child’ for tax purposes, please contact your registered tax agent or visit the ATO website.

How big a rebate can you receive?

The Australian Government adjusts rebate levels annually which apply from the 1 April each year.

The following table shows the rebate levels as of 1 April 2015.

Government Rebate

How do you claim the rebate?

There are two ways to claim the rebate:

  1. Claim it as a reduction on the health cover premiums
  2. Receive the full amount as a refund at tax time

To use the rebate to reduce your health cover premiums, you need to let your health fund know your income tier (from the above table). Australian Unity members can nominate their tier by completing a Rebate Application Form.

If you don’t apply for the rebate through your health fund, you can claim it as a tax credit in your annual tax return.

What do you receive a rebate for?

The rebate is applied to private hospital cover, extras only cover, and combined hospital and extras cover.

It does not apply to Overseas Visitors Cover or to Lifetime Health Cover loading.

What if your financial situation changes?

You can contact your health fund at any time during the year to change your income tier.

If you receive the incorrect rebate, you can always contact your registered tax agent and discuss how any under or over payment can be corrected at the appropriate time.

Find out more

  • Visit the ATO website to find out more about the Australian Government Rebate on Private Health Insurance
  • Contact us if you have any questions about how the rebate affects your health insurance premiums, or if you’d like to know how to select or change your income tier
  • Contact your registered tax agent if you have any specific tax-related questions about how the rebate affects you



Important Note: This information is provided as a summary only about the Australian Government Rebate, Medicare Levy Surcharge and Lifetime Health Cover loading information relevant to Private Health Insurance cover. Health Insurers are not permitted to provide tax advice. For tax advice or more detailed information please contact your registered tax agent or the Australian Taxation Office at ato.gov.au or visit the Australian Government’s website at privatehealth.gov.au