Learn How to Claim Private Health Insurance Rebate

The Government of Australia motivates you to take private health insurance, and this is why it offers most people a rebate on their premiums. This step by the government increases the affordability of private health insurance for all excluding the high income category of people.

You will fall under different levels of  rebate depending on your taxable income.  In general, the more you earn, the lower you get in the form of the rebate. The rebate does not exist if your income exceeds $140,000 (individuals) or $280,000 (families).

Single parents and couples (including de facto couples) fall under family tiers. For families with one or more children, the thresholds are raised by $1,500 for each child after the first.

The rebate does not cover the Lifetime Health Cover loading element of your premiums.

Claiming the rebate

If you are eligible for the rebate, there are two ways you can claim:

Through a reduced premium; or

Through your tax return at the end of the financial year.

If you choose to receive your rebate through your insurer, you will be asked to nominate the tier you expect to fall into based on your estimated income.  


If you nominate the wrong tier and this results in a lower rebate than you are entitled to, you will receive a tax offset through your tax return at the end of the financial year, which might result in a bigger tax refund.

If you get it wrong and nominate a tier that gives you a higher rebate than you are entitled to, you will incur a tax liability when you lodge your tax return at the end of the financial year. This means you could end up owing tax to the ATO or receive a smaller refund than you might have expected.

Your private health insurer will give you a statement by 15 July after the end of the financial year outlining your premiums and rebate. You can use this information to help you complete the relevant parts of your tax return.

To get help, speak to one of our experienced tax agents by calling us today or book an appointment at the nearest KPG office from your suburb.

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