What is the private health insurance rebate?

The private health insurance rebate is a government contribution towards the cost of your private health insurance premiums. It is income-tested and age-based — lower-income earners and older Australians receive a higher rebate percentage. For 2025-26, the base rebate for singles earning under $97,000 (or families under $194,000) ranges from 24.608% to 32.812% depending on age. You can receive the rebate as a premium reduction through your insurer or claim it as a tax offset when you lodge your tax return.

How much rebate do I get?

Your rebate percentage depends on your income tier and age group. For 2025-26, singles earning under $97,000 get the base tier rebate: 24.608% (under 65), 28.710% (65-69), or 32.812% (70+). As your income increases through Tier 1 ($97,001-$113,000), Tier 2 ($113,001-$151,000), and Tier 3 (over $151,000), the rebate decreases. At Tier 3, the rebate is 0% regardless of age. Family thresholds are double the singles thresholds.

Does the rebate apply to extras cover?

Yes. The private health insurance rebate applies to both hospital cover and general treatment (extras) cover. If you have a combined hospital and extras policy, the rebate applies to the full premium. If you only have extras cover without hospital cover, the rebate still applies to the extras premium — however, extras-only cover does not exempt you from the Medicare Levy Surcharge.

How do I claim the rebate?

You can claim the private health insurance rebate in two ways: (1) As a premium reduction — tell your health insurer you want to receive the rebate as a discount on your premiums. Your insurer will reduce your premiums by the rebate amount, so you pay less throughout the year. (2) As a tax offset — pay the full premium and claim the rebate when you lodge your tax return. Your insurer will send you a Private Health Insurance Statement by 15 July each year with the details you need. Most people choose the premium reduction for immediate savings.

Health Insurance Rebate Calculator

Calculate your private health insurance rebate based on income and age. See your rebate percentage, dollar savings, and what you actually pay after the government contribution.

Last verified: 1 July 2025

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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.

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