Government rebate

The 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 $158,000 or less, or a couple or family earning $316,000 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.

Government Rebate changes

Current

View Rebate tables as they apply from 1 July 2025

View rebates

Singles: Rebate by Age
Rebate Tier	Earning	less than 65 years	65-69 years	70+ years
Base Tier	$101,000 or less	24.288%	28.337%	32.385%
Tier 1	$101,001 - $118,000	16.192%	20.240%	24.288%
Tier 2	$118,001 - $158,000	8.095%	12.143%	16.192%
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	24.288%	28.337%	32.385%
Tier 1	$202,001 - $236,000	16.192%	20.240%	24.288%
Tier 2	$236,001 - $316,000	8.095%	12.143%	16.192%
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.

Singles: Rebate by Age
Rebate Tier	Earning	less than 65 years	65-69 years	70+ years
Base Tier	$97,000 or less	24.288%	28.337%	32.385%
Tier 1	$97,001 - $113,000	16.192%	20.240%	24.288%
Tier 2	$113,001 - $151,000	8.095%	12.143%	16.192%
Tier 3	$151,001 or more	0%	0%	0%

Couples & Families: Rebate by Age
Rebate Tier	Earning	less than 65 years	65-69 years	70+ years
Base Tier	$194,000 or less	24.288%	28.337%	32.385%
Tier 1	$194,001 - $226,000	16.192%	20.240%	24.288%
Tier 2	$226,001 - $302,000	8.095%	12.143%	16.192%
Tier 3	$302,001 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.

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.

Still have 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 if you have any questions about how the rebate affects your health insurance premium.

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