Private Health Insurance Government Rebate
The Australian Government subsidises private health insurance for most Australians — reducing your premium by up to 24.288% in 2025–26. Here's exactly who qualifies, how much you get, and how to make sure you're claiming it.
What Is the Private Health Insurance Rebate?
The Private Health Insurance Rebate is a government contribution toward the cost of your private health insurance premium. It was introduced to encourage Australians to take out private cover and reduce demand on the public hospital system.
The rebate is income-tested — meaning higher earners receive a smaller percentage (or no rebate at all). It applies to both hospital and extras cover. You can claim it in two ways:
2025–26 Rebate Rates by Income Tier
Current rates from 1 July 2025 to 31 March 2026:
| Tier | Singles income | Family income | Under 65 | 65–69 | 70+ |
|---|---|---|---|---|---|
| Base | ≤$101,000 | ≤$202,000 | 24.288% | 28.337% | 32.385% |
| Tier 1 | $101,001–$118,000 | $202,001–$236,000 | 16.192% | 20.240% | 24.288% |
| Tier 2 | $118,001–$158,000 | $236,001–$316,000 | 8.095% | 12.143% | 16.192% |
| Tier 3 | $158,001+ | $316,001+ | 0% | 0% | 0% |
Rates apply 1 July 2025 – 31 March 2026. Family thresholds increase by $1,500 per dependent child after the first. Source: privatehealth.gov.au — Private Health Insurance Rebate
Are you claiming your full rebate?
Our agents show you exactly what your cover costs after the government rebate — so you see the real price, not the sticker price.
See my rebate-adjusted price →What the Rebate Means in Real Dollars
On a hospital policy at $150/month before rebate, here's what you actually pay by tier:
†Example based on $150/month policy for singles under 65. Actual premiums vary by fund, policy, and state.
What to Do if Your Income Changes
Your rebate tier is based on your estimated income for the current financial year. If your income changes — promotion, redundancy, change in hours — your rebate entitlement changes too.
- Notify your fund any time to adjust your nominated rebate tier
- Claimed too much? You repay the difference at tax time via your return
- Claimed too little? You receive the balance as a tax offset when you lodge
Our agents help you work out the right tier to nominate based on your estimated income — so there are no surprises at tax time.