HOW THE GOVERNMENT REBATE WORKS
If you have health insurance, you may be eligible to receive the Australian Government Rebate to help towards your premium.
Each year health funds review their policies and announce any changes to health cover premiums. This includes announcing adjustments resulting from changes to the Australian Government's Rebate (Rebate) on private health insurance.
The Rebate on private health insurance was put in place to encourage Aussies to get health insurance and help people pay their premiums. The Rebate amount is calculated based on your income, age and family status. It’s usually adjusted annually on 1 April based on the Consumer Price Index (CPI) and the average premium increase across all health funds. This year the Rebate on private health insurance will stay the same until 1 April 2024.
Additionally, as Australia’s largest not-for-profit health fund, we’ve continued to be there for our members by providing over $536 million in total member benefits and support, including freezing premium increases 3 times over 3 years, providing 2 rounds of cashbacks to eligible members, extending cover for COVID-19 related hospital admissions*, and expanding our range of telehealth services, mental health and wellbeing programs and in-home hospital treatments for eligible members.
SHARING YOUR INCOME TIER INFORMATION WITH YOUR HEALTH FUND
Health funds rely on you to give them the correct information about your earnings bracket and set your premium amount accordingly.
If you choose a lower income tier than the one you’re in and claim a higher Rebate than your yearly income allows, there’s no penalty from your health fund. But at tax time, the Australian Tax Office (ATO) will charge you for any shortfall in your tax.
Equally, if you inadvertently put yourself in a higher income tier than the one you should be in, you’ll likely get a refund from the ATO.
You can choose not to share your income tier, or pay a standard health insurance premium throughout the year and claim your Rebate entitlement in a lump sum when you lodge your yearly tax return.
Which rebate tier are you in?
The income tiers change on 1 July 2023. Use this chart to find out which Rebate tier you fall into. The government adjusts the Rebate percentage on 1 April each year. The Australian Government's Rebate on private health insurance will stay the same until 1 April 2024.
Single Rebate Tier
From 1 July 2023
Base
Income: $93,000 or below
Medicare levy surcharge: 0.0%
| Age | Rebate |
|---|---|
| 65 and under | 24.608% |
| 65 to 69 | 28.710% |
| 70 and over | 32.812% |
Tier 1
Income: $93,001 to $108,000
Medicare levy surcharge: 1.0%
| Age | Rebate |
|---|---|
| 65 and under | 16.405% |
| 65 to 69 | 20.507% |
| 70 and over | 24.608% |
Tier 2
Income: $108,001 to $144,000
Medicare levy surcharge: 1.25%
| Age | Rebate |
|---|---|
| 65 and under | 8.202% |
| 65 to 69 | 12.303% |
| 70 and over | 16.405% |
Tier 3
Income: $144,001 or above
Medicare levy surcharge: 1.5%
| Age | Rebate |
|---|---|
| 65 and under | 0.000% |
| 65 to 69 | 0.000% |
| 70 and over | 0.000% |
Family Rebate Tier
From 1 July 2023
Base Tier
Income: $186,000 or below
Medicare levy surcharge: 0.0%
| Age | |
|---|---|
| 65 and under | 24.608% |
| 65 to 69 | 28.710% |
| 70 and over | 32.812% |
Tier 1
Income: $186,001 to $216,000
Medicare levy surcharge: 1.0%
| Age | |
|---|---|
| 65 and under | 16.405% |
| 65 to 69 | 20.507% |
| 70 and over | 24.608% |
Tier 2
Income: $216,001 to $288,000
Medicare levy surcharge: 1.25%
| Age | |
|---|---|
| 65 and under | 8.202% |
| 65 to 69 | 12.303% |
| 70 and over | 16.405% |
Tier 3
Income: $288,001 or above
Medicare levy surcharge: 1.5%
| Age | Rebate |
|---|---|
| 65 and under | 0.000% |
| 65 to 69 | 0.000% |
| 70 and over | 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. Learn more about the Medicare levy surcharge
Government Rebate FAQs
How can I claim or modify my Rebate?
There are several ways to do this:
- Log in to the My Membership app or online member services, go to My Cover then Australian Gov. Rebate to change or claim the Rebate.
- Complete the form on our website and email it to join.cancel@hcf.com.au.
- Visit your local HCF branch.
- Call us on 13 13 34.
What if I choose an incorrect income tier?
If you claim a Rebate that doesn’t match your income, you'll likely either get a refund or pay the difference at tax time.
Your Rebate can be easily updated if you choose an incorrect income tier or if your income has changed and you qualify for a different Rebate tier. Please note this can only be backdated to the beginning of the current tax year.
For more information on the Australian Government’s Rebate on private health insurance, visit the ATO’s website.
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IMPORTANT INFORMATION
* Some claims from Overseas Visitors Health Cover are excluded. Overseas Visitors Health Cover members should check their product information to see if they're covered.