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 $151,000 (individuals) or $302,000 (families) for the 2025 year. This will increase to $158,000 (individuals) or $316,000 (families) for the 2026 year.

What are the rebate rates?

The rebate applies to hospital, general treatment and ambulance policies and the rebate rates from 1 July 2024 to 30 June 2025 are:
 

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 2025 to 31 March 2026, the rebate percentages and the thresholds will change.

The Private Health Insurance Rebate Thresholds and Rates for the period 1 July 2025 to 31 March 2026 are:
 

The rebate rates may be reduced on 1 April 2026.

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.