HOW THE GOVERNMENT REBATE WORKS
If you have private health insurance, you may be eligible to receive the Australian Government Rebate to help towards your premium.
Each year health funds review their policies and announce any changes to health cover premiums. This includes announcing adjustments resulting from changes to the Australian Government's Rebate (Rebate) on private health insurance.
The Rebate was put in place to encourage Aussies to get health insurance and help people pay their premiums. The Rebate amount is calculated based on your income, age and family status. It’s usually adjusted annually on 1 April based on the Consumer Price Index (CPI) and the average premium increase across all health funds.
PROPOSED AUSTRALIAN GOVERNMENT REBATE CHANGES
In the latest Federal Budget, the Government announced a proposal to remove the additional rebate that applies to some members aged 65 and over, with rebates to be based on income only. If the proposed rebate changes go ahead, it may change how much you pay in premiums, depending on your individual situation. The Government says the aim is to simplify the rebate system and redirect savings to aged care.
Currently, this is a proposal only and still needs to be voted on and passed through Commonwealth Parliament. If approved, changes are expected to take effect from 1 April 2027.
To learn more about the proposed rebate changes and how they may impact you, visit our FAQs.
SHARING YOUR INCOME TIER INFORMATION WITH YOUR HEALTH FUND
Health funds rely on you to give them the correct information about your earnings bracket so they can set your premium amount correctly.
If you choose a lower income tier than the one you’re in and claim a higher Rebate than your yearly income allows, there’s no penalty from your health fund. But at tax time, the Australian Tax Office (ATO) will charge you for any shortfall in your tax.
Equally, if you inadvertently put yourself in a higher income tier than the one you should be in, you’ll likely get a refund from the ATO.
You can choose not to share your income tier, or pay a standard health insurance premium throughout the year and claim your Rebate entitlement in a lump sum when you lodge your yearly tax return.
WHICH REBATE TIER ARE YOU IN?
From 1 July 2026, the following income tiers and Rebate percentages apply:
| Singles | ≤$105,000 | $105,001-123,000 | $123,001-164,000 | ≥$164,001 |
|---|---|---|---|---|
| Families | ≤$210,000 | $210,001-246,000 | $246,001-328,000 | ≥$328,001 |
| Rebate | ||||
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
| < age 65 | 24.118% | 16.079% | 8.038% | 0% |
| Age 65-69 | 28.139% | 20.098% | 12.058% | 0% |
| Age 70+ | 32.158% | 24.118% | 16.079% | 0% |
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the income thresholds are increased by $1,500 for each child after the first.
Government Rebate FAQs
How do I claim or modify my Rebate?
You can claim or modify your Rebate by:
- logging in to the My Membership app, going to Manage Payments, then Government Rebate
- logging in to online member services, going to My Cover, then Government Rebate
- completing the Australian Government Rebate form and emailing it to join.cancel@hcf.com.au
- visiting your local HCF branch
- calling us on 13 13 34 (Mon to Fri: 8am to 8pm, Sat: 9am to 5pm AEST/AEDT).
What if I choose an incorrect income tier?
If you claim a Rebate that doesn’t match your income, you'll likely either get a refund or pay the difference at tax time.
Your Rebate can be easily updated if you choose an incorrect income tier or if your income has changed and you qualify for a different Rebate tier. Please note this can only be backdated to the beginning of the current tax year.
For more information on the Rebate, visit the ATO website.
The benefits of private health cover
We all have different needs when it comes to choosing private health cover. Here we share some of the benefits of having health cover and how to make the most of your cover.
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