Tax and rebates for health insurance
What is the Australian Government Rebate on private health insurance?
The rebate is an Australian Government initiative that helps make health insurance more affordable. It’s a sum of money you can get back at tax time or apply to your premium to make it cheaper. The rebate applies to hospital, extras and urgent ambulance insurance.
How do I get the rebate?
If you meet the Government’s eligibility criteria, you can access the rebate by purchasing private health insurance.
You can request your health fund to apply the rebate to your premium up front (making the cost of your health insurance immediately cheaper), or you can get it back as a lump sum when you lodge your tax return.
Neither way is better or will give you back a larger amount - it’s just a matter of preference.
Health insurance rebate calculator
The Australian Government Rebate on private health insurance is an initiative that helps make hospital and extras cover more affordable for Australians who are eligible for Medicare. It's a sum of money you can either get back at tax time, or apply to your premium now to make it cheaper.
Use this calculator as a guide to estimate how much you could get back with the rebate.
Your estimated rebate is 0.000%
Income thresholds
Your rebate tier depends on your age and taxable income. The less you earn, the greater your refund. For a family with at least two children, the thresholds are increased by $1,500 for each child after the first.
Income thresholds 1 July 2025 - 30 June 2026
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles |
$101,000 or less |
$101,001 – $118,000 |
$118,001 – $158,000 |
$158,001 or more |
| Families |
$202,000 or less |
$202,001 – $236,000 |
$236,001 – $316,000 |
$316,001 or more |
Rebate tiers
Your rebate tier is determined by your income threshold (refer to table above). The Australian Government adjusts the rebate tiers on 1 April every year. Find out more about how the rebate works on the ATO's website.
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| < Age 65 |
24.288% |
16.192% |
8.095% |
0% |
| Age 65 - 69 |
28.337% |
20.240% |
12.143% |
0% |
| Age 70+ |
32.385% |
24.288% |
16.192% |
0% |
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Frequently asked questions
How do I update my Australian Government rebate tier?
Am I still eligible for the Australian Government rebate on private health insurance if the lifetime health cover loading applies to me?
If you pay the lifetime health cover (LHC) loading, you're still eligible for the rebate. However, you'll only get a rebate on the base premium of your hospital insurance and not the LHC loading component.