Changes to Private Health Insurance Rebates

As a taxpayer who has private health, your taxable income affects which threshold you are entitled to. If you under or over claim, your rebate a private health insurance offset may be charged or refunded on lodgement of your tax return.

The ATO released new changes from the 1st April in regards to the Private Health Insurance Offset.

Do you remember the days when the health insurance offset was a nice round 30% for everyone? Then income thresholds were introduced which set the rebates at 30%, 20%, 10% and 0%.  Well those days are gone.

From the 1st of April each year, these rebate percentages are going to adjusted based on CPI & industry weighted average increase in premiums.

Below is the table that outlines the rebate percentages for the 2014/15 income year:

Base Tier

Tier 1 Tier 2 Tier 3
Singles $90,000 or less $90,001 – $105,000 $105,001 – $140,000 $140,001 +
Families (note 1) $180,000 or less $180,0001 – $210,000 $210,001 – $280,000 $280,001 +
Under 65 (note 2) 29.040% / 27.820% 19.360% / 18.547% 9.680% / 9.273% 0%
65-69 (note 2) 33.880% / 32.457% 24.200% /23.184% 14.520% /13.910% 0%
70+ (note 2) 37.720% / 37.094% 29.040% / 27.820% 19.360% / 18.547% 0%


  1. Single parents and couples (including de facto couples) are subject to the family tiers.  For families with children, the thresholds are increased by $1,500 for each child after the first
  2. The 1st % specifies the rebate % that applied from 1st July to 31st March.  The 2nd % specifies the rebate % that applies from 1st April to 30th June.

What do you need to do?

Review the table above and check which category your taxable or family taxable income falls into and which age group you are.  Then simply call your private health insurer and advise them. This will ensure that going forward the correct rebate is being applied to your premiums.

If you don’t call your private health insurer to adjust your rebate there will be an excess private health insurance adjustment on lodgement of your tax return.