The Private Health Insurance Rebate was introduced in 1999 to encourage Australians to take out their own private health insurance and reduce the reliance of an aging population on Government-funded health services. Effective from 1st July 2012, the Federal Government has now introduced a tiered rebate structure based on means-testing. The amount of rebate you receive is also affected by your age.
Singles earning under $84,000 and families earning under $168,000 are eligible for the maximum rebate, and at the other end of the spectrum, singles earning over $130,000 and families earning over $260,000 are not eligible for any rebate.
The Medicare Levy Surcharge was also modified according to the same tier structure.
| Singles Families |
Up to $84,000 Up to $168,000 |
$84,001-$97,000 $168,001-$194,000 |
$97,001-$130,000 $194,001-$260,000 |
$130,001 $260,001 |
| REBATE | ||||
| < 65 y.o. | 30% | 20% | 10% | 0% |
| 65-69 y.o. | 35% | 25% | 15% | 0% |
| 70+ y.o. | 40% | 30% | 20% | 0% |
| MEDICARE LEVY SURCHARGE | ||||
| All Ages | 0% | 1% | 1.25% | 1.5% |