Private Health Insurance Rebate for Tax Time
Maximising your tax return
Have you claimed the Private Health Insurance Rebate?
Tax time in Australia is the perfect opportunity to review your finances and ensure you’re getting the most out of your benefits, especially when it comes to your private health insurance. To help reduce the cost of health insurance, the Australian government private health insurance rebate is a tiered benefit that can be redeemed if you have eligible hospital or combined cover. Most commonly, this is claimed immediately as a reduction of your private health premium however if you have not claimed the cost throughout the year, you may be able to claim the rebate at tax time.
If you have eligible hospital or combined cover, you may be able to claim the Private Health Insurance Rebate, reducing the cost of your premiums throughout the year or claim it as a lump sum at tax time. Here’s everything you need to know to claim it correctly.
What Is the Private Health Insurance Rebate?
The Private Health Insurance Rebate is a government initiative that helps make health cover more affordable. It’s a rebate available to eligible Australians with a compliant private health insurance policy. The private health insurance rebate can cover hospital or combined cover.
You can claim the rebate in two ways:
As a reduced premium on your HHI hospital policy, or
As a tax offset when lodging your annual tax return with the ATO.
Who Is Eligible for the Rebate?
The rebate is income-tested, meaning the amount you’re entitled to will vary depending on your income and age bracket. The Australian Taxation Office (ATO) updates these income thresholds annually.
Eligibility is based on:
Your age
Your income (combined if you’re a couple or family)
Having an eligible Australian private health insurance policy
How to Claim the Rebate at Tax Time
If you haven’t claimed the rebate as a reduced premium throughout the year, you can claim it when lodging your tax return. The ATO will calculate the rebate you’re entitled to and apply it as a tax offset.
Here’s how:
- Check your Private Health Insurance Statement
We will send you a statement showing how much of the rebate you’ve claimed and for how long. - Provide your health fund details when lodging your return
You’ll need your Health Insurer ID, Membership Number, and the amount paid in premiums. - The ATO calculates your rebate
If you over- or under-claimed during the year, the ATO will adjust your refund or amount owing accordingly.
If your income was higher than you estimated and you received a larger rebate through reduced premiums, the ATO may require you to pay back the difference when you lodge your tax return. Conversely, if you under-claimed, you may get a rebate boost.
Holding private hospital cover not only gives you access to the rebate, it also helps you avoid the Medicare Levy Surcharge (MLS), which applies to high-income earners without hospital cover. The surcharge is between 1% – 1.5% of your income and can significantly increase your tax bill.
| Income Tier | Singles | Families |
|---|---|---|
| Base Tier | $93,000 or less | $186,000 or less |
| Tier 1 | $93,001 – 108,000 | $186,001 – 216,000 |
| Tier 2 | $108,001 – 144,000 | $216,001 – 288,000 |
| Tier 3 | $144,001+ | $288,001+ |
Final Tips for a Smooth Tax Time
Update your income estimate with us if your earnings change significantly.
Keep your private health insurance active on 30 June to ensure you’re eligible for the rebate each financial year.
Use myGov and link it to the ATO for easier access to your health fund statements and tax info.
Understanding how the Private Health Insurance Rebate works can make a big difference to your tax return. Whether you claim it through reduced premiums throughout the year or as a tax offset, make sure your details are up to date and you hold an eligible level of hospital cover. All of the Hunter Health Insurance hospital policies are compliant for the government rebate.
Still have questions? Feel free to reach out to our friendly customer service team to check your level of cover.
