August 2026
Important update for members aged 65 and over
The proposed rebate changes have not been passed by Parliament. If the proposal becomes law, we will contact affected members directly and explain what it means for their cover. The information on this page will be kept up to date to ensure our members are informed and supported through changes that may impact them.
How does the rebate work?
If you’re single and earning $164,000 or less, or a couple or family earning $328,000 or less, you may be eligible to receive a rebate on your private health insurance.
The Australian Government sets the rebate levels and income thresholds which are reviewed yearly.
- The rebate percentage is adjusted on 1 April each year. Australian Unity will notify members of any changes to premiums due to the rebate percentage changes.
- The income thresholds are usually adjusted on 1 July each year. It is your responsibility to be aware of these changes. If you are affected by rebate income threshold changes, you will need to update your rebate tier via Online Member Services, or by completing a rebate application form.
How do you receive your rebate?
If you qualify for the rebate, you can choose to claim it either:
through a reduced health insurance premium-
through your tax return with the ATO
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 online.
You can also contact your health fund or update in Online Member Services at any time during the year to change your income tier.
Why is the Government proposing this change?
The Australian Government says the proposed changes are intended to make the rebate system simpler and fairer between generations.
Under the proposal, rebate levels would be based on income only, not age. The Government has said this would make it easier for people to understand what rebate they may be eligible for.
The Government has also said savings from the proposal would help fund priority health, disability and aged care services, including specialist dementia care and the Support at Home program.
May 2026
-
The Government announced proposed changes to the private health insurance rebate.
October 2026
-
The Government is expected to consider whether the proposal will proceed.
October/November 2026
-
After a decision is made, we will update this page to ensure our members are kept informed.
-
If the proposal becomes law, we will contact affected members directly with more information.
1 April 2027
-
If passed, the proposed changes are expected to take effect from 1 April 2027.
Important: Nothing has changed yet. The proposed rebate changes have not been passed by Parliament. Your current cover, rebate and premium arrangements remain unchanged.
Proposed rebate percentages
If approved, from 1 April 2027 private health insurance rebates will be based on income only. The second column shows the proposed rebate percentages for all age groups.
 Singles cover - Proposed rebate changes |
|
|---|---|
| Rebate tier | All ages |
|
Base tier $105,000 or less |
24.118% |
|
Tier 1 $105,001 - $123,000 |
16.079% |
|
Tier 2 $123,001 - $164,000 |
8.038% |
|
Tier 3 $164,001 or more |
0% |
 Couples & Families - Proposed rebate changes |
|
|---|---|
| Rebate tier | All ages |
|
Base tier $210,000 or less |
24.118% |
|
Tier 1 $210,001 - $246,000 |
16.079% |
|
Tier 2 $246,001 - $328,000 |
8.038% |
|
Tier 3 $328,001 or more |
0% |
Single parents and couples (including de facto couples) are subject to family tiers.
If you have dependent children, your income threshold for the rebate increases by
$1,500 for each child after the first. To determine whether your child is a dependent
for tax purposes or if you want more information about the rebate, please contact your
registered tax agent or visit the ATO website.
Current rebate percentages
The following tables show the levels as they apply from 1 July 2026.
|
Singles cover: Rebate by age |
||||
|---|---|---|---|---|
| Rebate Tier | Earning | less than 65 years | 65-69 years | 70+ years |
| Base Tier | $105,000 or less | 24.118% | 28.139% |
32.158% |
| Tier 1 | $105,001 – 123,000 | 16.079% |
20.098% |
24.118% |
| Tier 2 | $123,001-164,000 | 8.038% | 12.058% | 16.079% |
| Tier 3 | $164,001 or more | 0% | 0% | 0% |
| Couples & Families: Rebate by Age
|
||||
|---|---|---|---|---|
| Rebate Tier | Earning | less than 65 years | 65-69 years | 70+ years |
| Base Tier | $210,000 or less | 24.118% | 28.139% | 32.158% |
| Tier 1 | $210,001-246,000 | 16.079% | 20.098% | 24.118% |
| Tier 2 | $246,001-328,000 | 8.038% | 12.058% | 16.079% |
| Tier 3 | $328,001 or more | 0% | 0% | 0% |
Single parents and couples (including de facto couples) are subject to family tiers. If you have dependent children, your income threshold for the rebate increases by $1,500 for each child after the first. To determine whether your child is a dependent for tax purposes or if you want more information about the rebate, please contact your registered tax agent or visit the ATO website.
Previous rebate percentages
The following table shows the levels as they apply from 1 April 2026 until 30 June 2026.
| Singles cover: Rebate by age |
||||
|---|---|---|---|---|
| Rebate Tier | Earning | less than 65 years | 65-69 years | 70+ years |
| Base Tier | $101,000 or less | 24.118% | 28.139% | 32.158% |
| Tier 1 | $101,001 - $118,000 | 16.079% | 20.098% | 24.118% |
| Tier 2 | $118,001 - $158,000 | 8.038% | 12.058% | 16.079% |
| Tier 3 | $158,001 or more | 0% | 0% | 0% |
| Couples & Families: Rebate by Age
|
||||
|---|---|---|---|---|
| Rebate Tier | Earning | less than 65 years | 65-69 years | 70+ years |
| Base Tier | $202,000 or less | 24.118% | 28.139% | 32.158% |
| Tier 1 | $202,001 - $236,000 | 16.079% | 20.098% | 24.118% |
| Tier 2 | $236,001 - $316,000 | 8.038% | 12.058% | 16.079% |
| Tier 3 | $316,001 or more | 0% | 0% | 0% |
Single parents and couples (including de facto couples) are subject to family tiers. If you have dependent children, your income threshold for the rebate increases by $1,500 for each child after the first. To determine whether your child is a dependent for tax purposes or if you want more information about the rebate, please contact your registered tax agent or visit the ATO website.