Private Health Insurance Rebate Thresholds Have Increased, Here’s What Changed from July 1st 2026
If you hold private health insurance in Australia, today is worth paying attention to.
From July 1st 2026, the income thresholds used to calculate the private health insurance rebate and Medicare Levy Surcharge have increased. This happens each financial year, and it matters because your rebate eligibility is reassessed every time you lodge your tax return.
Private health insurance rebate income thresholds: what changed July 1, 2026
2025-26
| Status | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single | ≤$101k | $101k–$118k | $118k–$158k | $158k+ |
| Family | ≤$202k | $202k–$236k | $236k–$316k | $316k+ |
2026-27 (new)
| Status | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single | ≤$105k +$4k | $105k–$123k | $123k–$164k | $164k+ |
| Family | ≤$210k +$8k | $210k–$246k | $246k–$328k | $328k+ |
Note: family threshold increases by $1,500 for each Medicare levy surcharge dependent child after the first. Source: ATO.
Here’s what changed:
Singles earning $105,000 or less now sit in the base tier, up from $101,000 last year. Families earning $210,000 or less also sit in the base tier, up from $202,000.
What this means in plain terms, if your income put you just over the threshold last financial year and you were receiving a reduced rebate or none at all, you could now be eligible for a higher rebate this year. It’s worth checking before you assume nothing has changed.
Your rebate entitlement is also based on the age of the oldest person on your policy and your family status as of June 30, so even if your income hasn’t changed, your eligibility might have.
SINGLE
Earning $106,000
1% MLS
Surcharge: $1,060
Earning $140,000
1.25% MLS
Surcharge: $1,750
Earning $170,000
1.5% MLS
Surcharge: $2,550
COUPLE / FAMILY / SINGLE PARENT
Earning $212,000
1% MLS
Surcharge: $2,120
Earning $250,000
1.25% MLS
Surcharge: $3,125
Earning $340,000
1.5% MLS
Surcharge: $5,100
*If you don't have private hospital cover, the surcharge applies.
Not sure where you sit? Use the ATO’s private health insurance rebate calculator or compare your cover at konkrd.com.au to make sure you’re on the right policy for your situation.
