Most Australians with private health insurance are currently receiving a rebate from the Australian Government to cover the cost of their premiums. This rebate is income tested. The rebate rate for Base Tier, age 70+ will be 32.385%, according to the new rebate levels that will apply from 1 April 2025.
The private health insurance rebate applies to hospital, general treatment as well as ambulance policies offered by the Australian registered health insurers. It is not applicable for overseas visitors’ health cover and other types of insurance.
Private Health Insurance Rebate
In Australia, the private health insurance rebate is a government contribution to assist with the cost of your private health insurance. Qualifying individuals of private health insurance can claim the rebate as an upfront reduction on their private health insurance premium.
Officials will pay the rebate to the individual’s insurer and the insurer reduces their premium. If an individual doesn’t want to claim the rebate as a reduction to their premium, they can claim it through their tax return. They may be able to claim it as a tax offset in their annual income tax return.
You can receive a reduced premium if your health insurance policy covers either or both: hospital and general treatment expenses (commonly known as ancillary or extras).
Who is eligible for Private Health Insurance Rebate?
Eligibility requirements for the private health insurance rebate depends on interested individuals’ circumstances such as their policy as well as income. The qualifying requirements of private health insurance rebate are listed below.
- Individuals’ residential status need to be Australian.
- Applicant’s must have a complying health insurance policy with an Australian-registered health insurer.
- Candidates need to be eligible for Medicare.
- Claimants’ need to be a private health insurance incentive beneficiary.
- You must have an income for surcharge purposes that is under the Tier 3 income limit.
How can you Claim private health insurance rebate?
It is very important to know that there are two ways to claim the rebate. Individuals can claim from their health insurer and from the Australian Taxation Office.
- From the health insurer: Individuals can claim this rebate as an upfront reduction to their private health insurance premium. Officials will provide the rebate to your health insurer and they’ll reduce the cost of your premium.
- From the Australian Taxation Office: Qualifying individuals can claim this rebate through their tax return if they don’t receive it as a premium reduction. Your health insurer will deliver to you a statement at the end of the financial year. The statement will help you to fill out your tax return.
Private Health Insurance Rebate Income Thresholds
Your rebate entitlement based on your family status. The Income thresholds for the private health insurance rebate for 2024-25 are as follows.
| Family status | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single | $97,000 or less | $97,001 to $113,000 | $113,001 to $151,000 | $151,001 or more |
| Family | $194,000 or less | $194,001 to $226,000 | $226,001 to $302,000 | $302,001 or more |
The family income threshold can be increased by $1,500 for each Medicare levy surcharge dependent child after the first child.
Private Health Insurance Rebate Rates
Private health insurance rebate rate is the percentage that a qualifying individual can get back from their health insurance premiums in the form of a reduction of the premium or as a refundable tax offset. The private health insurance rebate rates for 1 April 2025 to 30 June 2025 are listed in the below table.
| Income for surcharge purposes | Under 65 years old | Between 65 to 69 years old | 70 years old or older |
| $97,000 or less for a single person | 24.288% | 28.337% | 32.385% |
| $97,001 – $113,000 for a single person | 16.192% | 20.240% | 24.288% |
| $113,001 – $151,000 for a single person | 8.095% | 12.143% | 16.192% |
| $151,001 or more for a single person | 0% | 0% | 0% |
| $194,000 or less for a family | 24.288% | 28.337% | 32.385% |
| $194,001 – $226,000 for a family | 16.192% | 20.240% | 24.288% |
| $226,001 – $302,000 for a family | 8.095% | 12.143% | 16.192% |
| $302,001 or more for a family | 0% | 0% | 0% |