How to Claim Private Health Insurance Rebate?
To encourage Australians to take out private health insurance, the government offers most people a rebate on their premiums, which increases the affordability of private health insurance for all but the highest earners. Different levels of rebate are available depending on your taxable income and, broadly speaking, the more you earn, the lower the rebate. The rebate cuts out altogether if your income exceeds $158,000 (individuals) or $316,000 (families) for the 2026 year. This will increase to $164,000 (individuals) or $328,000 (families) for the 2027 year.
What are the rebate rates?
The rebate applies to hospital, general treatment and ambulance policies.
The Private Health Insurance Rebate Thresholds and Rates for the period 1 July 2025 to 31 March 2026 are:
| Base Tier | Tier1 | Tier2 | Tier3 | |
| Singles | $101,000 or less | $101,001-$118,000 | $118,001-$158,000 | $158,001 or more |
| Families | $202,000 or less | $202,001-$236,000 | $236,001-$316,000 | $316,001 or more |
| < age 65 | 24.288% | 16.192% | 8.095% | 0% |
| Age 65-69 | 28.337% | 20.240% | 12.143% | 0% |
| Age 70+ | 32.385% | 24.288% | 16.192% | 0% |
Rebate rates effective from 1 April 2026 to 30 June 2026 are:
| Base Tier | Tier1 | Tier2 | Tier3 | |
| Singles | $101,000 or less | $101,001-$118,000 | $118,001-$158,000 | $158,001 or more |
| Families | $202,000 or less | $202,001-$236,000 | $236,001-$316,000 | $316,001 or more |
| < age 65 | 24.118% | 16.079% | 8.038% | 0.000% |
| Age 65-69 | 28.139% | 20.098% | 12.058% | 0.000% |
| Age 70+ | 32.158% | 24.118% | 16.079% | 0.000% |
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
The rebate does not cover the Lifetime Health Cover loading element of your premiums.
From 1 July 2026 to 31 March 2027, the rebate thresholds will change.
The Private Health Insurance Rebate Thresholds and Rates for the period 1 July 2026 to 31 March 2027 are:
| Base Tier | Tier1 | Tier2 | Tier3 | |
| Singles | $105,000 or less | $105,001-$123,000 | $123,001-$164,000 | $164,001 or more |
| Families | $210,000 or less | $210,001-$246,000 | $246,001-$328,000 | $328,001 or more |
| < age 65 | 24.118% | 16.079% | 8.038% | 0.000% |
| Age 65-69 | 28.139% | 20.098% | 12.058% | 0.000% |
| Age 70+ | 32.158% | 24.118% | 16.079% | 0.000% |
The rebate rates may be reduced on 1 April 2027. In addition, it has been proposed that, from 1 April 2027, the Government will remove the higher age based PHI tiers.
Claiming the rebate
If you are eligible for the rebate, there are two ways you can claim:
- through a reduced premium; or
- through your tax return at the end of the financial year.
If you choose to receive your rebate through your insurer, you will be asked to nominate the tier you expect to fall into based on your estimated income.
Get expert help
If you nominate the wrong tier and this results in a lower rebate than you are entitled to, you will receive a tax offset through your tax return at the end of the financial year, which might result in a bigger tax refund.
If you get it wrong and nominate a tier that gives you a higher rebate than you are entitled to, you will incur a tax liability when you lodge your tax return at the end of the financial year. This means you could end up owing tax to the ATO or receive a smaller refund than you might have expected.
Your private health insurer will provide the ATO with information outlining our premiums and rebate, so this can be prefilled into your tax return. Alternatively, you can request a statement from your provider or download one from the member section of their website.
To get help, speak to one of our experienced tax agents by calling 13 23 25 today or book an appointment at your nearest office.
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