Rebate Percentages 2025–26
| Single Income | Under 65 | 65–69 | 70+ |
|---|---|---|---|
| $97,000 or less | 24.608% | 28.710% | 32.812% |
| $97,001 – $113,000 | 16.405% | 20.507% | 24.608% |
| $113,001 – $151,000 | 8.202% | 12.303% | 16.405% |
| $151,001+ | 0% | 0% | 0% |
Family thresholds are double. Add $1,500 per dependent child after the first.
How to Claim
Two options: reduce your premium (your insurer applies the rebate directly, so you pay less each month) or claim it as a tax offset when you lodge your return. Most people take the premium reduction — it's simpler and you don't wait until tax time.
Why the Rebate Matters
If you earn $90,000 and pay $2,000/year for health insurance, the rebate saves you about $492/year. That effectively makes your insurance cost $1,508 instead of $2,000. And if you're over the Medicare Levy Surcharge threshold ($93,000), having insurance saves you the 1% surcharge too — an additional $930.
Frequently Asked Questions
How do I get the rebate?
Tell your health insurer your income tier and they'll reduce your premium. Or claim it as a tax offset when you lodge your return. You'll need your health fund's statement.
Does the rebate apply to extras cover?
Yes. The rebate applies to both hospital and extras (general treatment) policies.
What if my income changes mid-year?
If your income ends up in a different tier than what you told your insurer, it gets squared up in your tax return. You may owe money or get extra back.