Federal Government Rebate
The Federal Government’s Rebate is available to everyone who is eligible for Medicare and has private health insurance – no matter what your type of cover, level of cover, or income. It is not means tested and makes quality health care more affordable and accessible to all Australians.
Which Rebate am I entitled to?
Effective 1 April 2005 the following entitlements apply:
- If you are aged under 65 years, you are eligible to receive the 30% Government Rebate on your health insurance premium
- If either you or a person covered by your policy are aged 65 to 69 years, then you are eligible to receive the 35% Government Rebate
- If either you or a person covered by your policy are aged 70 years and over, then you are eligible to receive the 40% Government Rebate
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More about the April 2005 changes to the Federal Government Rebate |
How does the Rebate work?
A discount is applied to your private health insurance premiums. For example, if your premium is normally $2,000 per year and you are entitled to receive the 30% Rebate, the premium will be reduced by $600 once the rebate is applied, hence becoming $1,400 per year. The Rebate gives you an opportunity to select a more comprehensive level of cover than you otherwise would have if you had to pay the full premium.
How can I receive the Government Rebate?
There are three ways to claim the Rebate:
- As a premium reduction: As an existing or new member, you can enjoy an immediate benefit and reduce your premium by the rebate amount. To receive the Rebate as a premium reduction you need to complete and return to us a Government Rebate Application form. Then, as long as you’re eligible for the Government Rebate, we can automatically deduct it from your premium.
- Claim as part of your tax return: You can choose to receive the Rebate at the end of the financial year by claiming it in your Tax Return.
- Claim at a Medicare office: You can also claim your rebate at any Medicare office, providing you can show proof of a private health insurance payment.
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Download a Government Rebate Application form |
Government Rebate FAQs
How can I maximise my Rebate?
The more you pay for your private health insurance, the higher your savings will be. You can choose to select more comprehensive cover by using the saving provided by the Rebate.
Who is eligible for the Federal Government Rebate?
Anyone who is eligible for Medicare and who takes out private health insurance with a registered fund is eligible for the Rebate.
How much is the rebate worth?
The Government Rebate is worth 30%, 35% or 40% of the total cost of private health insurance premiums, depending on the age of the oldest person on the membership.
Is the Federal Government Rebate means tested?
No.
What if the cost of private health insurance increases?
The Rebate keeps pace with any cost increases.
I have a private health insurance policy for my children, but I am not covered by it. Can I still claim the Rebate?
Yes, as a parent you can apply for the Rebate on your children's policy. The amount of rebate will be calculated based on the age of the people on the policy.
My employer pays my health insurance, so who claims the Rebate?
If your employer pays your health insurance and you are registered for the Rebate with a fund, your employer will then pay 30%, 35% or 40% less on your premiums.
If your employer pays your health insurance and you are not registered for the Rebate with a fund, you can claim the Rebate through your income tax or at a Medicare office.
If I don't pay tax (i.e. pensioners and students) am I still eligible for the Federal Government Rebate?
The Federal Government Rebate can be claimed by all private health insurance members regardless of whether you pay tax. The Rebate can directly reduce your premiums or the ATO can give you a refundable credit for the full entitlement amount irrespective of the amount of your tax liability. Alternatively, you can claim the Rebate at a Medicare office.
Will members need to register for the Rebate each year?
No.
I am a member of a commercial insurer. Can I get the Rebate?
The Federal Government Rebate is not available to people holding commercial health insurance policies. The Rebate only applies to members who belong to a registered fund.
Is there a minimum amount of money I have to spend in contributions in order to claim the Rebate?
No.
Does the rebate apply to hospital and extras cover?
Yes.
Does Medicare handle all the queries?
No. However, as a registered health fund we are able to assist members with queries, with the exception of some tax questions or direct claim queries, which should be directed to Medicare.
Does the Rebate take money out of the public system?
It is well documented that there is a direct correlation between decreasing numbers of privately insured people and increasing pressure on the public hospital system. The Rebate rewards current health fund members for taking responsibility for their own health and promotes a balanced public and private health care system to ensure all Australians can access quality health care at an affordable cost.
