The private health rebate is a percentage of the total premium amount which can be applied as a reduction to your health insurance premiums or it can be applied as a refundable tax offset come tax time.
What impacts my private health rebate?
Your rebate is calculated based on your living status, age and income at the end of the tax year. The more money you earn, the less rebate you receive.
To find the right rebate for you, refer to the tables below:
Rebate 2025–26
| Income Threshold From 1 July 2025 | Under 65 years | 65-69 years | 70+ years |
|---|---|---|---|
| Single $101,000 or less Family* $202,000 or less | 24.288% | 28.337% | 32.385% |
| Single $101,001 – $118,000 Family* $202,001 – $236,000 | 16.192% | 20.240% | 24.288 |
| Single $118,001 – $158,000 Family* $236,001 – $316,000 | 8.095% | 12.143% | 16.192% |
| Single $158,001 or more Family* $316,001 or more | 0% | 0% | 0% |
Rebate up to 65 years old in 2024–25
| Income | Rebate for 1 July 2024 – 31 March 2025 | Rebate for 1 April 2025 – 30 June 2025 |
|---|---|---|
| Singles | ||
| $97,000 or less | 24.608% | 24.288% |
| $97,001 – $113,000 | 16.405% | 16.192% |
| $113,001 – $151,000 | 8.202% | 8.095% |
| $151,001 or more | Not eligible | Not eligible |
| Families | ||
| $194,000 or less | 24.608% | 24.288% |
| $194,001 – $226,000 | 16.405% | 16.192% |
| $226,001 – $302,000 | 8.202% | 8.095% |
| $302,001 or more | Not eligible | Not eligible |
The rebate between 65 and 69 years old in 2024–25
| Income | Rebate for 1 July 2024 – 31 March 2025 | Rebate for 1 April 2025 – 30 June 2025 |
|---|---|---|
| Singles | ||
| $97,000 or less | 28.710% | 28.337% |
| $97,001 – $113,000 | 20.507% | 20.240 % |
| $113,001 – $151,000 | 12.303% | 12.143% |
| $151,001 or more | Not eligible | Not eligible |
| Families | ||
| $194,000 or less | 28.710% | 28.337% |
| $194,001 – $226,000 | 20.507% | 20.240% |
| $226,001 – $302,000 | 12.303% | 12.143% |
| $302,001 or more | Not eligible | Not eligible |
The rebate for 70 years or above in 2024–25
| Income for surcharge purposes | Rebate for 1 July 2024 – 31 March 2025 | Rebate for 1 April 2025 – 30 June 2025 |
|---|---|---|
| Singles | ||
| $97,000 or less | 32.812% | 32.385% |
| $97,001 – $113,000 | 24.608% | 24.288% |
| $113,001 – $151,000 | 16.405% | 16.192% |
| $151,001 or more | Not eligible | Not eligible |
| Families | ||
| $194,000 or less | 32.812% | 32.385% |
| $194,001 – $226,000 | 24.608% | 24.288% |
| $226,001 – $302,000 | 16.405% | 16.192% |
| $302,001 or more | Not eligible | Not eligible |
Please Note: Age is based on the age of the oldest person on the policy. Income = your combined annual taxable income.
Private health rebate example:
Joan is 32, single and earns $86,000 a year and pays $1100 in private health insurance premiums BEFORE any rebate.
Joan is therefore entitled to the highest rebate amount of 24.608%
24.608% of $1,100 = $270.69
Joan’s final premium amount less rebate is: $1,100 – $270.69 = $829.31
Alternatively, Joan can apply to have the rebate amount offset at tax time.
The importance of updating your income with your health insurer
If you earn within one of the higher income tiers listed above and haven’t informed your health insurer, you might receive a private health rebate that’s larger than you’re entitled to.
On your tax return, the ATO calculates your correct rebate based on your income and compares this with the rebate you claimed during the year.
If you unknowingly claimed more than your entitlement, the ATO will ask you to repay the difference. The private health insurance liability on your Notice of Assessment is your repayment amount.
Do I need to do anything to fix my private health rebate on my tax return?
If the ATO makes you repay part of your private health rebate, you have two options to correct this for the future:
- Report your income level to your health insurer: Contact your health insurance provider and let them know which income bracket you fall into. They will then be able to adjust your premium to reflect the rebate you’re able to claim. As a result, your health premiums will likely increase a bit, but you won’t have to pay the private health rebate back at tax time.
- Continue to claim the full private health rebate and pay the difference later: If you don’t want to pay any more in your insurance premium then you can continue to claim the full rebate. However, when you lodge your next tax return, the ATO will either deduct the over-claimed amount from your tax refund or add it to your tax payable — meaning you’ll need to pay back whatever you over-claimed.
To find out more about private health cover read here.
