Government Rebate on Private Health Insurance

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.

How does the rebate work?

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 2017.

Singles: Rebate by Age
EARNING <65 years 65-69 years 70+ years
$90,000 or less 25.934% 30.256% 34.579%
$90.001 – $105,000 17.289% 21.612% 25.934%
$105,001 – $140,000 8.644% 12.966% 17.289%
Over $140,000 0% 0% 0%


Couples & Families: Rebate by Age
EARNING <65 years 65-69 years 70+ years
$180,000 or less 25.934% 30.256% 34.579%
$180.001 – $210,000 17.289% 21.612% 25.934%
$210,001 – $280,000 8.644% 12.966% 17.289%
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.

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:


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

Are you covered?

Now you know how the rebate can help make private health insurance more affordable, why not check out what we’ve got to offer.

Check out our range of most popular hospital and extras covers
Let us recommend our best-fit cover based on your needs
Know what you want? Select from our range of hospital and extras covers

Still got questions about the Private Health Insurance Rebate?

  • Visit the ATO website to find out more about the Australian Government Rebate on Private Health Insurance.
  • Contact your registered tax agent if you have any specific tax-related questions.
  • Call Australian Unity on 13 29 39 if you have any questions about how the rebate affects your health insurance premium.