Proposed changes to the Australian Government Rebate for people aged 65 and over

The Australian Government has proposed changes to the private health insurance rebate for people aged 65 and over.

Nothing is changing yet. The proposal still needs to pass Parliament before it can become law, so your current rebate remains unchanged.

This page explains what is proposed, who could be affected and what may happen next.

What is the Australian Government Rebate?

The Australian Government Rebate helps eligible people reduce the cost of private health insurance. You can claim it through your tax return or use it to reduce your premium.

The rebate applies to hospital, extras and ambulance insurance.

If you’re eligible, the rebate you receive is currently based on:

• your income
• the age of the oldest person covered by your policy.

Learn more about the income thresholds and rebate rates on the Australian Taxation Office website.

What has the Australian Government proposed?

The proposed changes relate only to the additional age-based rebate.

If Parliament passes the legislation, people aged 65 and over who currently receive an additional age-based rebate would receive the same rebate rate as people under 65 in the same income tier.

The rebate would continue to be income tested.

Current and proposed rebate rates

Singles rebate rates:

Age	Base tier current < $105,000	Tier 1 current $105,001 - $123,000	Tier 2 current $123,001 - $164,000	Tier 3 current > $164,001
Under 65	24.118%	16.079%	8.038%	0%
65 to 69	28.139%	20.098%	12.058%	0%
70 and over	32.158%	24.118%	16.079%	0%

Families rebate rates:

Age	Base tier current < $210,000	Tier 1 current $210,000 - $246,000	Tier 2 current $246,001 - $328,000	Tier 3 current > $328,001
Under 65	24.118%	16.079%	8.038%	0%
65 to 69	28.139%	20.098%	12.058%	0%
70 and over	32.158%	24.118%	16.079%	0%

Under the proposal, the following rates would apply to every age group from 1 April 2027:

Age	Base tier proposed	Tier 1 proposed	Tier 2 proposed	Tier 3 proposed
Under 65	24.118%	16.079%	8.038%	0%
65 to 69	24.118%	16.079%	8.038%	0%
70 and over	24.118%	16.079%	8.038%	0%

The income thresholds shown with the current rates apply from 1 July 2026 to 30 June 2027 and are subject to annual indexation. The proposed rebate rates would remain unchanged on 1 April 2027 however would be subject to annual indexation from 1 April 2028.

Read the Department of Health, Disability and Ageing’s detailed explanation of the proposed rebate changes.

How could I be affected?

You don’t need to do anything right now. The proposal has not passed Parliament, so your current rebate remains unchanged.

If Parliament passes the legislation, people aged 65 and over who currently receive an additional age-based rebate would receive a lower rebate. If you’re aged over 65, this could increase the amount you pay towards your premium from the proposed start date of 1 April 2027.

The amount would depend on individual circumstances. We can’t provide personalised information until the proposed changes are finalised.

Is the entire rebate being removed?

No. The proposal would remove only the additional rebate currently available to eligible people aged 65 and over.

Affected members would still receive the rebate available to people in the same income tier, provided they remain eligible. See the tables above for the current and proposed rates.

Will my health cover change?

No. The proposed changes relate only to the rebate you may receive from the Australian Government. They would not change the health cover you hold with HBF.

When could the changes apply?

Nothing is changing yet. The proposal still needs to pass Parliament before it can become law.

If Parliament passes the legislation, the proposed rebate changes would start on 1 April 2027, at the same time as the annual premium review. This means affected members may see both changes reflected in their premium from this date.

We’ll update this page when more information is available and contact affected members before anything changes.