Private Health Insurance Rebate Changes

Oct 13, 2014 | Business, ITR

Jane Phillips
From 1 July 2012, the Government introduced three new “Private Health Insurance Tiers”.

Private Health fund members will no longer be guaranteed the minimum 30% rebate. In addition, the Medicare Levy Surcharge will also be progressively increased based on annual income levels.


 UnchangedTier 1Tier 2Tier 3
Singles$0 – $88,000$88,001 – $102,000102,001 – $136,000$136,001 +
Couples or Families$0 – $176,000$176,001 – $204,000$204,001 – $272,000$272,001 +
< age 6530%20%10%0%
Age 65 – 6935%25%15%0%
Age 70 +40%30%20%0%
All Ages0%1%1.25%1.5%

If you choose the wrong rebate level, any rebate amount either due to you as a refund or required to be repaid to the Government will be calculated with the lodgement of your income tax return and settled at that time.

Your Private health insurer will give you a statement at the end of the financial year to help you complete your tax return.

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