Private Health Rebates Released

The private health insurance rebate percentages that apply from 1 July 2019 have been released. The table below sets out the rebate percentages for the 2018/19 income year.

Base TierTier 1Tier 2Tier 3
Singles$90,000 or less$90,001-$105,000$105,001-$140,000$140,001 or more
Families$180,000 or less$180,001-$210,000$210,001-$280,000$280,001 or more
Under 6525.415%/25.059%16.943%/16.706%8.471%/8.352%0%
  1. From 1 July 2015, the income thresholds used to calculate the private health insurance rebate and the Medicare levy surcharge will not be adjusted for 6 years, ie thresholds will remain at the 2014/15 levels from 2015-16 to 2020/21
  2. Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first
  3. The first percentage specifies the rebate percentage tht applied from 1 July 2018 to 31 March 2019. The second percentage specifies the rebate percentage that applies from 1 April 2019 to 30 June 2019

The private health insurance rebate has been indexed from 1 April 2014. From that date, the rebate contribution from the government is annually adjusted by a universal Rebate Adjustment Factor (RAF).

The RAF represents the difference between the Consumer Price Index (CPI) and the industry weighted average increase in premiums. The RAF is enacted by the Private Health Insurance Legislation Amendment Act 2014 and is set out in the Private Health Insurance (incentives) Rules 2012 (No 2).

A person’s rebate entitlement continues to be based on their age and income for Medicare levy surcharge purposes.

The information contained on this website and in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website and in this article are of a general nature only and are based on our interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

View Comments