How does the Australian Government Rebate work?

Since 1 April 2014, the Australian Government Rebate on private health insurance has been calculated by linking it to the rate of inflation and the industry average price increase. Essentially, the rebate helps make private health insurance much more accessible to everyone.

To make sense of how the rebate works and applies to you, please read our list of frequently asked questions, call 13 29 39 or send us an email at


What are the Australian Government percentages?

Rebate table

What's an income tier?

There are two income tiers: one for singles and another for couples/families. Both tiers are broken down into 4 thresholds and are based on the amount of income that applies to you. The table above can help you with nominating your tier.

Do I need to nominate an income tier?

If you don’t nominate an income tier, or nominate an incorrect income tier, the Australian Taxation Office (ATO) will correct any over or under payment of your rebate in your annual tax return in the form of a refund or a liability.

How do I claim the rebate on my health cover?

You can claim the rebate one of two ways: as a reduction on the payments you make for your health cover or as a refund when you lodge your tax return.

To claim the rebate as a reduction on the payments you make for your health cover you first need to register.

It’s easy to apply for the rebate. Simply log into Online Member Services to access the Rebate Application form or call us on 13 29 39 and we’ll mail you one to complete.

What does ‘income testing’ mean?

It means the rebate you receive to discount the price of your health cover is affected by a variety of factors, including your age, income and the number of children covered under your policy.

Who is income tested for the rebate?

Every adult on your policy will be income tested to see what their share of the price paid is and how much of a rebate they’ll receive. Income thresholds based on the amount you earn are outlined in the rebate table below and vary depending on whether you are single, a couple or family.