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Guide to the 2024 Private Health Insurance Rebate

Do you have health insurance? You may be eligible for the Australian Government Rebate to help pay your premiums. The rebate amount is calculated based on your income, age and family status, and it’s adjusted annually on 1 April.
Fact Checked

Updated: 24 May 2024

To find out more about the rebate and how it could help you, read our Guide to the 2024 Private Health Insurance Rebate. This article is packed with information about who is eligible for the rebate and how to claim it. Plus, we answer some of the most common questions people have about private health insurance rebates.

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What is the private health insurance rebate?

Private health insurance rebates are a great way to save money on your premiums. The Private Health Insurance Rebate (PHI RB) is an amount the government contributes towards the cost of private hospital cover, which can be income tested so it’s tailored just for you.

The Australian Government offers a health insurance rebate worth up to 10% on your premiums if you are an individual or family earning less than $140,000 per year. The percentage decreases as taxable income increases, making this offer more valuable for those with lower salaries who need help paying their monthly bills. However, if your taxable income is over $280,000, then you won’t receive a rebate since the amount is higher than what the eligible amount received in benefits.

Why is there a government rebate on private health insurance?

The Private Health Insurance Rebate was introduced in Australia for one reason — to help everyday Australians afford private health cover. It also helps make the industry more sustainable by attracting new members with its rebates, which are available on all policies regardless of age or gender. The Australian healthcare system is designed in such a way that it takes the pressure off public hospitals. For example, by limiting how many people need to use them and reducing long waiting times for treatment.

What are health insurance tax rebate income tiers?

The Private Health Insurance Rebate is just for people who make less than $90,000 or families with an income under $180,000. If you fall in this category, then it’s possible that your tax credits will be refunded and can go towards paying off next year’s premiums.

Tier 1 is for people with higher incomes and tier 2 has a lower limit. If you’re single, over age 50 or qualify as elderly, then your rebate rate will depend on what type of tax return that falls into full (for everyone) or reduced (eligible taxpayers who do not meet all requirements but still want some assistance).

Below is a table showcasing the rebate amount received in percentages depending on age:

Age
Base Tier
Tier 1
Tier 2
Tier 3
<65
24.61%
16.41%
8.20%
0%
65-69
28.71%
20.51%
12.30%
0%
70+
32.81%
24.61%
16.41%
0%

Source: Privatehealth.gov.au (March 2024)

How does having a family impact the Australian government rebate

The threshold for single parents and couples with children is increased by $1,500 per child after the first. If you’re a parent in this situation—whether married or not—you’ll be treated as though your family were covered under Private Health Insurance Rebate rules when it comes time to apply. Remember that the $1,500 is provided for each child. If you have a family health insurance policy which covers two adults and two children, you stand to receive $3,000 back in rebates for your private health insurance. 

How do you calculate your rebate tier?

The easiest way to determine your rebate tier is by looking at the tax form that you or someone in your family filed with their annual taxable income. It will show which refundable taxes apply based on what they were earning during this time period, and it can help ensure eligibility for any rebates offered. 

The Australian Taxation Office will make any necessary adjustments to your tax return if you aren’t sure which tier is correct. You can also consult a professional adviser for guidance.

How much is your rebate entitlement

Your rebate amount depends on your age and taxable income. The less you earn, the greater your refund. The rebate is adjusted on 1 April annually, so be sure to review the rebate amount and regulations before applying to make sure you remain eligible.

Tax Tiers
Base Tier
Tier 1
Tier 2
Tier 3
Single
≤$90,000
$90,001-105,000
$105,001-140,000
≥$140,001
Families
≤$180,000
$180,001-210,000
$210,001-280,000
≥$280,001

Source: Private Health Gov.au (March 2024)

How to claim the rebate

You can claim the Private Health Insurance Rebate in one of two simple ways. You get it upfront as a discount on your premiums, or through submitting an official tax return to ATO — if you choose this option make sure that all details are correct and estimated income is submitted with claim form. If you choose to get it as a discount on your premiums, you’ll need to fill out the Medicare Rebate Claim Form, and give your health insurance fund your estimated income.

Below are the different ways to claim your rebate:

Lump sum payment

You also have the option to claim your refund through your annual tax return from the Australian Taxation Office where you can receive the money in your account. For this claim, you need to obtain your statement from your health insurer at the end of the financial year, complete your tax return, and submit your forms to the Australian Taxation Office.

Discount on your private health insurance premiums