Private Health Insurance Rebate and Your Income Tier
The rebate the government pays toward your private health cover depends on your income — and the thresholds have moved again this year. Here is exactly where you sit, and what it means for your premiums and your tax return.
Last updated 14 July 2026 · Figures sourced from the Department of Health, Disability and Ageing and privatehealth.gov.au
What is the Private Health Insurance Rebate?
The Private Health Insurance Rebate is an amount the government contributes toward the cost of your private health insurance premiums. It applies to policies that provide private patient hospital cover, general treatment (extras) cover, or a combined hospital and general policy.
The rebate is income tested. The more you earn, the smaller your entitlement — and above the top threshold, it disappears altogether.
Two ways to claim it
You can take the rebate as:
A refundable tax offset — you pay full premiums and claim the rebate back when you lodge your tax return.
When we prepare your return, we test your actual income for surcharge purposes against the thresholds below. If you claimed more rebate than you were entitled to, it is recovered as a tax liability. If you claimed less, you receive the balance as a refundable offset.
Four tiers decide your rebate — find yours below.
Your family status on 30 June determines whether the single or family column applies to you.
Family: $210,000 or less
Family: $210,001–$246,000
Family: $246,001–$328,000
Family: $328,001 or more
Family thresholds increase by $1,500 for each Medicare levy surcharge dependent child after the first.
Your rate also depends on the oldest person covered.
Older policyholders receive a higher rebate at every income tier. The rate below took effect on 1 July 2026 and applies for the rest of the 2026–27 year unless the Government revises it on 1 April 2027.
| Base | 24.118% |
|---|---|
| Tier 1 | 16.079% |
| Tier 2 | 8.038% |
| Tier 3 | 0.000% |
| Base | 28.139% |
|---|---|
| Tier 1 | 20.098% |
| Tier 2 | 12.058% |
| Tier 3 | 0.000% |
| Base | 32.158% |
|---|---|
| Tier 1 | 24.118% |
| Tier 2 | 16.079% |
| Tier 3 | 0.000% |
These rates took effect 1 July 2026 and are reviewed again on 1 April 2027. The Government typically publishes the new rate in March — this page will be updated once it is released.
Which threshold actually applies to you?
Your family status on 30 June — not the rest of the year — decides which threshold column applies. This catches people out more than any other part of the rebate.
| Your status on 30 June | Single threshold | Family threshold | Whose income counts |
|---|---|---|---|
| You were single, no dependants | Yes | No | Yours |
| You had a spouse | No | Yes* | Yours and your spouse's |
| You were a single parent | No | Yes* | Yours |
| Separated during the year, single with no dependants | Yes | No | Yours |
| Separated during the year, single with dependants | No | Yes* | Yours |
| Single for part of the year, then partnered | No | Yes | Yours and your spouse's |
| Spouse passed away during the year, no dependants | No | Yes | Yours and your spouse's |
*Family threshold increases by $1,500 for each Medicare levy surcharge dependent child after the first.
Four things worth checking before 30 June.
Getting the rebate right on your return
When we lodge your return, we compare what you actually claimed through your insurer against what your income entitles you to.
Claimed too little, or nothing at all? The shortfall is added to your return as a refundable tax offset.
We recommend contacting your health insurer directly if your income has changed significantly — adjusting your nominated rebate percentage during the year avoids a surprise bill or missed refund later.
We will work out your correct rebate tier.
Income for surcharge purposes is not just your salary — reportable fringe benefits, reportable super contributions, and net investment losses all count. If your circumstances changed this year, book a tax appointment and we will confirm your entitlement before you lodge.
Book Your Tax Appointment →Income thresholds and rebate rates shown are for the 2026–27 income year (1 July 2026 – 30 June 2027) as published by the Australian Government Department of Health, Disability and Ageing and privatehealth.gov.au, current as at 14 July 2026. The rebate percentage is reviewed again on 1 April 2027 and may change. This information is general in nature — it does not constitute tax advice. Please contact us to confirm how it applies to your circumstances.