Private Health Insurance Rebate Calculator 2025
Calculate how much government rebate you receive on your private health insurance premiums for 2024–25, based on your income and age.
Government Rebate
$0
Rebate Percentage
0%
After-Rebate Premium
$0
Monthly Saving
$0
Monthly Net Premium
$0
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Private Health Insurance Rebate Tiers 2024–25
The rebate is income-tested and age-adjusted. Higher earners receive a smaller rebate, and older policyholders receive a higher rebate to reflect the greater cost of their cover.
| Income (Singles) | Under 65 | 65–69 | 70+ |
|---|---|---|---|
| $0 – $93,000 | 24.40% | 28.47% | 32.54% |
| $93,001 – $108,000 | 16.26% | 20.33% | 24.40% |
| $108,001 – $144,000 | 8.13% | 12.20% | 16.26% |
| $144,001+ | 0% | 0% | 0% |
How to Claim the Rebate
You can receive the rebate in two ways:
- Premium reduction: Your insurer applies the rebate directly to your premium, reducing your monthly payments immediately. This is the most common approach.
- Tax offset: You pay the full premium and claim the rebate as a refundable tax offset when you lodge your annual tax return.
If you choose the premium reduction and your actual income ends up in a different tier, you may need to repay some rebate or receive additional rebate when you lodge your return.
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Frequently Asked Questions
What is the private health insurance rebate?
The Australian government provides a rebate to help cover the cost of private health insurance. The rebate percentage depends on your income and the age of the oldest person on the policy. For 2024–25, it ranges from 0% for high earners to 32.54% for those aged 70 or over on lower incomes.
How do I claim the private health insurance rebate?
You can claim as a premium reduction (your insurer directly reduces your monthly bill) or as a tax offset at year end. Most people prefer the premium reduction for immediate savings. If your income changes during the year, a reconciliation occurs when you lodge your tax return.
Does the rebate apply to hospital, extras, or both?
The rebate applies to both hospital and general treatment (extras) cover, as long as the policy is with a registered Australian insurer. The combined premium for your full policy is eligible.
What income is used to calculate the rebate tier?
The ATO uses your income for surcharge purposes, which includes taxable income plus reportable fringe benefits, reportable employer super contributions, and total net investment losses. It may be higher than your taxable income alone.
Why does age affect the rebate?
Older Australians generally use more health services and face higher premiums. The government provides a higher rebate for those aged 65 and over to help offset these higher costs and encourage continued cover.
Can I still get the rebate if I earn over $144,000?
No. Once your income for surcharge purposes exceeds $144,000 (singles threshold for 2024–25), the private health insurance rebate reduces to 0%. You would still benefit from avoiding the Medicare levy surcharge by holding private hospital cover.
Disclaimer: Rebate percentages are based on 2024–25 government rates. Family income thresholds differ from single thresholds shown here. This calculator is a guide only and not financial advice. Consult your health insurer or a registered tax agent for personalised advice.
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