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Tax and other government health cover initiatives

Australian Government Private Health Insurance Rebate

The Australian Government provides an income tested rebate to help people meet the cost of private health insurance. To access the rebate you must be eligible for Medicare and the rebate applies to hospital, general treatment and ambulance policies. Income thresholds are used to determine a person’s eligibility for the rebate.

More information about the Private Health Insurance Rebate is available at PrivateHealth.gov.au. 

How the rebate tiers work

Example 1 - Singles Policy: If you are under 65 years of age, with a singles policy, on an income of $120,000, will receive a rebate of 8.644%.

Example 2 - Family or Couples Policy: Where the older adult member (on the family/couples policy) is 72 years of age*, and your family income is $190,000, you will receive a rebate of 25.934%.

*The age of the older adult member in a family/couples policy determines the rebate level.

Please note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.

The income thresholds used to determine a person’s eligibility for the Rebate are:

Rebate Tier Base Tier Tier 1 Tier 2 Tier 3

Singles

$90,000 or less

$90,001 - 105,000

$105,001 - 140,000

$140,001 or more

Families

$180,000 or less

$180,001 - 210,000

$210,001 - 280,000

$280,001 or more

The Rebate amounts are adjusted by the Australian Government annually on 1 April. The Private Health Insurance Rebate Percentages 
effective from 1 April 2017 to 31 March 2018 are as follows:

 

Under 65

25.934%

17.289%

8.644%

0%

65-69

30.256%

21.612%

12.966%

0%

70 and over

34.579%

25.934%

17.289%

0%

 
Medicare Levy Surcharge

All ages

0.0%

1.0%

1.25%

1.5%

 

Medicare Levy Surcharge

The Medicare Levy Surcharge (MLS) is levied on payers of Australian tax who do not have private hospital cover and who earn above a certain income. The MLS amounts are detailed above. The MLS is payable in addition to the Medicare levy.

How the MLS tiers work

Example 1 - Singles Policy: If you have a singles policy and earn assessable income of $103,000 you will pay a Medicare Levy Surcharge of $1,030 (being $103,000 x 1.0%) if you do not have a hospital insurance policy.

Example 2 - If you are a family and earn assessable income of $275,000 you will pay a Medicare Levy Surcharge of $3,438 (being $275,000 x 1.25%) if you do not have a hospital insurance policy. 

More information about the Medicare Levy Surcharge is available on the Australian Tax Office website.

Lifetime Health Cover

See our Lifetime Health Cover page.