The Australian Government Rebate on Private Health Insurance was introduced as a financial incentive to help Australians afford private health cover.
The rebate depends on your age, is income-tested and applies to all Health Care Insurance products. The rebate isn't available for the Lifetime Health Cover loading portion of membership payments.
Your rebate amount is based on your age and assessable income*.
Below are the thresholds set by the Australian Government for the 2019/2020 financial year.
From 1 April 2014, the rebate is indexed each year by the difference between Consumer Price Index (CPI) and the industry average increase in premiums using a Government - calculated formula.
It's up to you to nominate a rebate tier (based on your age and assessable income*). If you don't tell us, or if you choose the wrong tier, don't worry because the Australian Taxation Office (ATO) will work out any differences when you put in your annual tax return.
If you aren't sure which rebate tier you should choose, please contact your tax agent, financial advisor or the ATO at www.ato.gov.au/privatehealthinsurance
Most people choose to take their rebate up front as a lower premium, but if you'd prefer to claim the rebate as a lump sum through your tax at the end of the financial year, you can just pay the full premium.
* For the calculation of assessable income which is known as income for Medicare Levy Surcharge puproses, please seek the advice of your tax agent, financial advisor or contact the ATO help line on 132 862 or visit their webiste here.
How can I claim the rebate?
You can claim your rebate either:
- as a reduction in your contributions; or
- as an income tax offset on your income tax return
For your convenience and certainty that you receive your full rebate entitlement, we recommend you register to have your rebate taken off the contributions you pay to HCI.
Who is eligible for the Rebate?
Most Australians with private health insurance receive a rebate from the Australian Government to help cover the cost of their premiums. However, from July 1 2012 the private insurance rebate is income tested. The rebate applies to hospital, general treatment and ambulance policies.