Why does the government give back less in the Australian Government Rebate on private health insurance each year?

The Australian Government Rebate on private health insurance was introduced in 1999 to help make health insurance more affordable.

Each year on 1 April, the government compares the national average of health fund premium increases to the standard cost of living in Australia, known as Consumer Price Index (CPI). Unfortunately, because the rebate is a government initiative, we don’t have control over how much it’s reduced by. For more information on changes to the rebate visit privatehealth.gov.au or ato.gov.au