Australian Government Rebate on private health insurance
What is the Australian Government Rebate on private health insurance?
The Australian Government Rebate on private health insurance is a way to help offset the cost of private health insurance premiums for policyholders. The rebate is income tested and applies to hospital, extras and ambulance policies.
It’s recognition by the government that consumers who invest in private health insurance are taking responsibility for their own healthcare needs, while also contributing significantly to the Australian healthcare system.
It also recognises the fact that private healthcare users take pressure off the public system, especially with respect to public hospitals.
The rebate is income tested. Depending on income thresholds, you may be entitled to a reduced rebate. Different thresholds apply depending on whether you have a single income or a family income. Your entitlement is also based on the age of the oldest person covered by the policy.
Income Thresholds effective 1 July 2024 to 30 June 2025:
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|
Singles |
$97,000 or less |
$97,001 – $113,000 |
$113,001 – $151,000 |
$151,001 + |
|
Couples/Families |
$194,000 or less |
$194,001 – $226,000 |
$226,001 – $302,000 |
$302,001 + |
Private Health Insurance Rebate effective from 1 April 2024 to 31 March 2025:
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|
Under 65 |
24.608% |
16.405% |
8.202% |
0% |
|
65-69 |
28.710% |
20.507% |
12.303% |
0% |
|
70+ |
32.812% |
24.608% |
16.405% |
0% |
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
Common questions
What policies are eligible for the rebate?
The rebate applies to hospital, extras and ambulance policies. It does not apply to overseas cover.
How can I claim my rebate?
If you are eligible for the Australian Government Rebate on private health insurance, you can claim it one of two ways:
- as a premium reduction through Westfund (you pay less upfront). If you want to claim your rebate as a reduced premium, contact Westfund; or
- as a tax offset when lodging your annual tax return. The Australian Taxation Office can provide more information on claiming the rebate through your tax return.
I want to claim my rebate as a premium reduction through Westfund. What do I need to do?
If you choose to receive your rebate as a premium reduction, you’ll need to nominate the tier you expect to fall into in order to avoid a tax liability. You can nominate your tier by contacting us (this will usually be done when you join Westfund).
If you haven’t previous claimed the rebate and you’re claiming your rebate for the first time, you’ll also need to complete the “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium" form in order to receive the rebate.
The easiest way to complete this form is through our Members Online. Alternatively, you can download the form on our website, complete it and send it to us.
What is the “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium" form?
The “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium" form allows you to claim the Australian Government Rebate on Private Health Insurance as a reduced premium through Westfund, this means you pay less upfront for your policy.
Why do I have to complete the “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium" form?
If you choose to receive your rebate as a premium reduction and you’re claiming your rebate for the first time, you’ll need to complete an “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium" form.