The Australian Government rebate helps to make private health insurance more affordable by reducing the amount you need to pay for your health insurance premiums. The rebate is income-tested and applies to both hospital and extras cover, so even if you’ve got an extras only policy, you can still save money.
If you’re single and earning $140,000 or less, or a couple or family earning $280,000 or less, you may be eligible to receive a rebate on your private health insurance.
The Australian Government sets the rebate levels.
The following table shows the levels as they apply from 1 April 2021.
Singles: Rebate by Age |
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| EARNING | <65 years | 65-69 years | 70+ years |
| $90,000 or less | 24.608% | 28.710% | 32.812% |
| $90,001 – $105,000 | 16.405 % | 20.507% | 24.608% |
| $105,001 – $140,000 | 8.202% | 12.303% | 16.405% |
| Over $140,000 | 0% | 0% | 0% |
Couples & Families: Rebate by Age |
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| EARNING | <65 years | 65-69 years | 70+ years |
| $180,000 or less | 24.608% | 28.710% | 32.812% |
| $180,001 – $210,000 | 16.405% | 20.507% | 24.608% |
| $210,001 – $280,000 | 8.202% | 12.303% | 16.405% |
| Over $280,000 | 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 $1500 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.
If you qualify for the rebate, you can choose to claim it either
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.
Now you know how the rebate can help make private health insurance more affordable, why not check out what we’ve got to offer.