The Australian Government provides an income-tested rebate to help people meet the cost of private health insurance.
A person may claim the private health insurance rebate if they:
- are eligible for Medicare
- have a complying health insurance product (CHIP) that provides hospital treatment, general treatment (also known as ancillary or extras) cover or both, and
- have a taxable income for Medicare Levy Surcharge (MLS) purposes as shown in the table below.
Income thresholds
The income thresholds used to determine a person’s eligibility for the rebate were updated on 1 July 2024 and are based on the following table:
Income thresholds effective from 1 July 2024
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $97,000 or less | $97,001-$113,000 | $113,001-$151,000 | $151,001 or more |
| Couples / Families | $194,000 or less | $194,001-$226,000 | $226,001-$302,000 | $302,001 or more |
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
The income thresholds for the previous financial year (1 July 2023 to 30 June 2024) were as follows.
Income thresholds | 1 July 2023 to 30 June 2024
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $93,000 or less | $93,001-$108,000 | $108,001-$144,000 | $144,001 or more |
| Couples / Families | $186,000 or less | $186,001-$216,000 | $216,001-$288,000 | $288,001 or more |
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
Rebate rates
The percentage that you can get back in the form of a reduction on your premium, or as a refundable tax offset, is referred to as the rebate rate.
The Private Health Insurance Rebate rates are based on the Rebate Adjustment Factor and are generally updated on 1 April each year.
There are no changes to the rebate rates (percentage levels) for the period 1 April 2024 to 31 March 2025, and these are currently based on the following table.
Private Health Insurance Rebate percentages from 2023-25:
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Rebate Entitlement | ||||
| Under 65 | 24.608% | 16.405% | 8.202% | 0.00% |
| 65-69 | 28.710% | 20.507% | 12.303% | 0.00% |
| 70+ | 32.812% | 24.608% | 16.405% | 0.00% |
If your circumstances change throughout the financial year, or the oldest person on your policy turns 65 or 70, this will affect your rebate entitlement.
The tiers are also based on your annual taxable income for Medicare Levy Surcharge purposes.
More information
For more information about the Australian Government Rebate on private health insurance you can:
- visit ato.gov.au/privatehealthinsurance,
- visit health.gov.au/privatehealth,
- call GMHBA on 1300 446 422, or
- consult a tax professional.