Australian Government Rebate on private health insurance
The Australian Government Rebate on private health insurance is money the government puts towards your premium to help reduce the cost. Your rebate depends on your income and your age.
Latrobe Health Services can take it straight off your premium, so you pay less each month instead of waiting until tax time.
Want to see how much of a difference it could make? It takes about two minutes.
Who can get the Australian Government Rebate?
You can get the Australian Government Rebate if you’re eligible for Medicare. It applies to hospital, extras and ambulance cover from an Australian registered health insurer, including Latrobe Health Services. The rebate is income tested, so the more you earn, the less you get. It doesn’t apply to overseas visitors health cover.
How much is the Australian Government Rebate?
From 1 July 2026 to 31 March 2027, the Australian Government Rebate is between 8.038% and 32.158% of your premium.
Two things set your rate: your income tier, and the age of the oldest person on your policy.
Income tiers for 2026-27
| Income Threshold | Base Tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Singles | $105,000 or less | $105,001 to $123,000 | $123,001 to $164,000 | $164,001 or more |
| Families | $210,000 or less | $210,001 to $246,000 | $246,001 to $328,000 | $328,001 or more |
Single parents and couples use the family thresholds. These thresholds apply for the whole 2026-27 financial year.
Rebate rates from 1 July 2026 to 31 March 2027
| Age of the oldest person on your policy | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.118% | 16.079% | 8.038% | 0% |
| 65 to 69 | 28.139% | 20.098% | 12.058% | 0% |
| 70 and over | 32.158% | 24.118% | 16.079% | 0% |
Not sure which tier you land in? Try the private health insurance rebate calculator on the ATO website.
How do I claim the Australian Government Rebate?
There are two ways to claim the Australian Government Rebate. Both are worth the same over a full year, so the only real difference is when you get the money:
- As a premium reduction. You tell Latrobe Health which income tier you expect to be in, and we take the rebate off your premium as you pay it (no waiting until July).
- As a tax offset. You pay the full premium during the year, then claim the rebate back when you lodge your tax return.
At the end of the financial year, your Latrobe Health tax statement has the numbers you need. The ATO usually pre-fills them into your return anyway.
What happens if I nominate the wrong income tier?
Nothing happens at Latrobe Health, and the Australian Taxation Office (ATO) doesn’t charge a penalty for getting an estimate wrong. The ATO simply squares it up when you lodge your tax return.
- Nominate a lower tier than your actual income and you’ll have received too much rebate, so you’ll owe the difference at tax time.
- Nominate a higher tier than your actual income and you’ll have received too little, so the ATO pays the difference back as a tax offset.
So if your income changes part way through the year, tell us. It’s a small job now and one less surprise at tax time.
Does the rebate apply to a Lifetime Health Cover loading?
No. If you pay a Lifetime Health Cover (LHC) loading, the Australian Government Rebate doesn’t apply to the loading part of your hospital premium. You still get the rebate on the rest of it.
Lifetime Health Cover is a separate government scheme with its own rules. Here’s how the Lifetime Health Cover loading works.
How does the rebate relate to the Medicare Levy Surcharge?
The Australian Government Rebate and the Medicare Levy Surcharge use the same income tiers, but they pull in opposite directions. The rebate reduces what you pay for cover. The surcharge is an extra tax you pay if you earn above the base tier and don’t hold hospital cover.
Work out whether the Medicare Levy Surcharge applies to you.
When do the rebate rates change?
The Australian Government adjusts the rebate rates on 1 April each year, using something called the Rebate Adjustment Factor. Income thresholds are indexed separately, on 1 July. The rates shown on this page apply until 31 March 2027.
The Australian Government has also proposed changes to the rebate for people aged 65 and over. Read what the proposed rebate changes mean for over 65s.
Still have a question about the rebate?
Latrobe Health Services can’t give you tax advice, and encourages members to visit health.gov.au or consult their tax/financial advisor. Alternatively, you can calculate your income by using the calculator at ato.gov.au.
Ready to see what cover would cost you?
This information is general only and isn’t tax or financial advice. Rebate rates on this page apply from 1 July 2026 to 31 March 2027 and income thresholds apply for the 2026-27 financial year. For advice about your own situation, speak to your tax adviser or call the ATO on 13 28 61.
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