The Australian Government offers a rebate on private health insurance to make cover more affordable. The rebate reduces the cost of your hospital and extras premiums, either upfront through your insurer or as a tax offset at the end of the year.
The rebate is a government contribution towards the cost of your private health insurance premiums. It’s available to most Australians with an eligible hospital, extras, or combined policy. The rebate is income- and age-based, meaning the percentage you receive depends on your household income and your age.
The rebate was introduced to encourage Australians to take out private health insurance. By subsidising premiums, the government helps:
The new thresholds apply 1 July 2025 – 31 March 2026. Family thresholds increase by $1,500 for each dependent child after the first.
| Income Tier | Singles Income | Families Income | <65 | 65–69 | 70+ |
|---|---|---|---|---|---|
| Base Tier | ≤ $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% |
The rebate is applied as a percentage of your premium. For example:
| Person | Income | Tier & Rate | Premium | Savings |
|---|---|---|---|---|
Emma
Age 34
| $90,000 | Base Tier: 24.288% | $3,000 annual | ~$728 |
Peter and Sarah
Age 67
| $210,000 (Combined) | Tier 1: 20.240% | $6,000 family | ~$1,214 |
Alan
Age 72
| $165,000 | Tier 3: 0% | Any premium | No rebate |
You can claim the rebate in two ways:
The rebate can reduce your premium by hundreds each year, making health cover more affordable. It also works alongside the Medicare Levy Surcharge and Lifetime Health Cover loading to encourage Australians to take out cover earlier.
It’s a government contribution towards premiums, available to Australians with eligible cover.
Between 8.095% and 32.385%, depending on your age and income tier.
Either upfront through your insurer or as a tax offset via your tax return. If you organise your cover through us, we will take care of this for you.
Yes, all hospital, extras, and combined policies qualify.
We make the numbers clear so you don’t miss out.
See your premium with the rebate already applied
See your premium with the rebate already applied
Understand which tier you fall into
Find out how much you’ll save based on your income and age
With Konkrd you can:
