Health insurance for under 30s and young adults

The age-based discount: who gets it and how much

Since 1 April 2019, insurers can offer people aged 18 to 29 a discount of up to 10% on their hospital premiums. The discount is 2% for each year you are under 30 when you first take out a hospital policy that offers it, up to 10% for 18 to 25 year olds (privatehealth.gov.au, checked 11 October 2026).

Insurers don't have to offer it, and it applies to hospital cover only, not extras. Where a policy does offer it, it's available to new and existing policy holders. You can't get it while you're covered as a dependant on a family or single parent policy: you either hold your own policy and get the discount, or you're a dependant, not both.

Staying on your parents' policy

Reforms passed in June 2021 let funds keep adult dependants on family policies up to 31. Each fund chooses its own limit within that, and many charge more for adult dependants through an extended family option. You stop being a dependant if you marry or enter a de facto relationship.

You cannot have both: the age-based discount does not apply while you are covered as a dependant. And for the Medicare Levy Surcharge, a dependant on a family hospital policy is not liable for the surcharge as long as they have no spouse or dependants of their own. Marrying or moving in with a partner ends your dependant status; our guide to health insurance for young couples covers what changes then.

Why the 31st birthday deadline matters

Lifetime Health Cover loading adds 2% to your hospital premium for every year you are over 30 when you first take out hospital cover, counted from the 1 July after your 31st birthday. It is capped at 70% and only drops off after ten years of continuous cover. Holding any hospital policy on that date, even Basic, avoids it. Once you hold cover on or after that date, you also get up to 1,094 days without cover over your lifetime before a loading starts, which can absorb a gap between jobs or a period travelling.

Not sure when your base day is? Our Lifetime Health Cover loading calculator works it out from your date of birth, and shows the loading you'd pay if you joined later.

The surcharge once you earn more

If you are not covered as a dependant and your income for surcharge purposes goes above $105,000 (2026-27), you pay a surcharge of 1% to 1.5% of that income unless you hold hospital cover with an excess of no more than $750. For many people in their twenties, the first pay rise over the threshold is the moment a hospital policy starts paying for itself.

Which cover suits a 20 to 29 year old

The cheapest hospital cover that satisfies the surcharge and Lifetime Health Cover is Basic, but Basic covers very little. If you play contact or high-impact sport, Bronze is the practical minimum, because it must cover joint reconstructions (torn ligaments and tendons) and bone, joint and muscle. If you might start a family or pursue IVF in the next few years, pregnancy and assisted reproduction are only guaranteed on Gold, with waits of up to 12 months, so it pays to plan ahead. Extras are worth it only if you will actually claim more than you pay.

A simple decision path

Whatever you choose, compare policies by their Private Health Information Statement, which lists the categories covered, the excess and the waiting periods in a standard format.

• Still eligible as a dependant on a family policy, and happy with that cover? Staying on it is often the cheapest option.
• Leaving your parents' policy, or never on one? Take hospital cover before the 1 July after your 31st birthday to avoid the loading.
• Joining before 30? Ask each fund whether the policy offers the age-based discount, and at what percentage.
• Income over the singles threshold? A hospital policy with an excess of $750 or less avoids the surcharge.
• Sporty? Choose at least Bronze. Planning children? Consider Gold, a year ahead.