The private health rebate is a percentage of the total premium amount which can be applied as a reduction to your health insurance premiums or it can be applied as a refundable tax offset come tax time.
What impacts my private health rebate?
Your rebate is calculated based on your living status, age and income at the end of the tax year. The more money you earn, the less rebate you receive.
To find the right rebate for you, refer to the tables below:
Singles (01 July 2023 – 30 June 2024)
| Income 2023-24 FY | Under 65 Years | 65 years – 69 Years | 70 years and over |
|---|---|---|---|
| $93,000 or less | 24.608% | 28.710% | 32.812% |
| $93,001- $108,000 | 20.507% | 20.507% | 24.608% |
| $108,001- $144,000 | 12.303% | 12.303% | 16.405% |
| $144,001 or more | 0% | 0% | 0% |
Couple, Family, Single Parents (01 July 2023 – 30 June 2024)
| Income 2023-2024 FY | Under 65 Years | 65 years – 69 Years | 70 years and over |
|---|---|---|---|
| $186,000 or less | 24.608% | 28.710% | 32.812% |
| $186,001- $216,000 | 16.405% | 20.507% | 24.608% |
| $216,001- $288,000 | 8.202% | 12.303% | 16.405% |
| $288,001 or more | 0% | 0% | 0% |
Please Note: Age is based on the age of the oldest person on the policy. Income = your combined annual taxable income.
Private health rebate example:
Joan is 32, single and earns $86,000 a year and pays $1100 in private health insurance premiums BEFORE any rebate.
Joan is therefore entitled to the highest rebate amount of 24.608%
24.608% of $1100 = $270.69
Joan’s final premium amount less rebate is: $1100 – $270.69 = $829.31
Alternatively Joan can apply for the rebate amount to be offset come tax time.
The importance of updating your income with your health insurer
If your income falls into one of the higher income tiers listed above and you have not informed your health insurer, then you might receive a larger private health rebate than you were entitled to.
On your tax return, the ATO calculates your correct rebate based on your income and compares this with the rebate you claimed during the year.
If you unknowingly claimed more than your entitlement, the ATO will ask you to repay the difference. The private health insurance liability on your Notice of Assessment is your repayment amount.
Do I need to do anything to fix my private health rebate on my tax return?
If the ATO makes you repay part of your private health rebate, you have two options to correct this for the future:
- Report your income level to your health insurer: Contact your health insurance provider and let them know which income bracket you fall into. They will then adjust your premium to reflect the correct rebate you are entitled to. As a result, your health premiums will likely increase a bit, but you won’t have to pay the private health rebate back at tax time.
- Continue to claim the full private health rebate and pay the difference later: If you don’t want to pay any more in your insurance premium then you can continue to claim the full rebate. However, when you lodge your next tax return, the ATO will take the funds out of your tax refund or add them to your tax payable essentially meaning you’re required to pay back whatever you have over-claimed.
To find out more about private health cover read here.
