Private Health Insurance Rebate: 2026 Tiers and Rates
The Australian Government pays part of most people's private health insurance premium. How much depends on your income and the age of the oldest person on the policy. Here are the current tiers, the rates from 1 April 2026 and the rules for claiming it.
The private health insurance rebate is a contribution the Australian Government makes towards your health insurance premium. From 1 April 2026 it is worth up to 24.118% of your premium if everyone on the policy is under 65, 28.139% if the oldest person is 65 to 69 and 32.158% if the oldest person is 70 or over. The rebate falls as your income rises and stops altogether in the top income tier: above $158,000 for singles or $316,000 for families in the 2025–26 income year, and above $164,000 and $328,000 in 2026–27.
The percentages are reset every 1 April and the income thresholds every 1 July, so this guide gives the figures with their dates. Everything below comes from the ATO and the Government’s privatehealth.gov.au, checked on 28 September 2026.
Who can get the rebate
To be eligible you must:
- hold a complying health insurance policy with an Australian registered health insurer. Hospital cover, general treatment (extras) cover and combined policies all qualify, as do ambulance policies.
- be eligible for Medicare
- be a private health insurance incentive beneficiary, which in practice means an adult covered by the policy. If a policy only covers children, their parents are the beneficiaries.
- have an income for surcharge purposes below the tier 3 threshold.
Your residency status doesn’t matter beyond Medicare eligibility. What doesn’t qualify: overseas visitors health cover, overseas student health cover, cover from an insurer that isn’t registered in Australia, and the Lifetime Health Cover loading part of a hospital premium.
The income tiers
The rebate uses the same income tiers as the Medicare Levy Surcharge, and the same definition of income: your taxable income plus reportable fringe benefits, total net investment losses and reportable super contributions (and your spouse’s, if you have one). Dependent children’s income is never included.
2025–26 income year
| Family status | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single | $101,000 or less | $101,001 – $118,000 | $118,001 – $158,000 | $158,001 or more |
| Family | $202,000 or less | $202,001 – $236,000 | $236,001 – $316,000 | $316,001 or more |
2026–27 income year
| Family status | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single | $105,000 or less | $105,001 – $123,000 | $123,001 – $164,000 | $164,001 or more |
| Family | $210,000 or less | $210,001 – $246,000 | $246,001 – $328,000 | $328,001 or more |
Family thresholds rise by $1,500 for each Medicare Levy Surcharge dependent child after the first. A family with three dependent children in 2026–27 is in the base tier up to $213,000.
Single or family: your status on 30 June
For the rebate, your family status on the last day of the income year decides which thresholds apply. That is different from the surcharge, which works period by period.
| Your status on 30 June | Thresholds used | Whose income for the full year |
|---|---|---|
| Single, no dependent children | Single | Yours |
| Had a spouse | Family | Yours and your spouse’s |
| Single parent | Family | Yours |
| Separated during the year, single with no children on 30 June | Single | Yours |
| Single for part of the year, then partnered | Family | Yours and your spouse’s |
| Spouse died during the year, single with no children on 30 June | Family | Yours and your late spouse’s |
Source: ATO, income thresholds and rates for the private health insurance rebate.
The rebate percentages
The rate depends on your income tier and on the age of the oldest person covered by the policy. A couple where one partner is 66 and the other 60 gets the 65–69 rate.
From 1 April 2026 to 30 June 2026, and 1 July 2026 to 31 March 2027 (the same percentages apply in both periods)
| Oldest person on the policy | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.118% | 16.079% | 8.038% | 0% |
| 65 to 69 | 28.139% | 20.098% | 12.058% | 0% |
| 70 and over | 32.158% | 24.118% | 16.079% | 0% |
1 July 2025 to 31 March 2026
| Oldest person on the policy | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.288% | 16.192% | 8.095% | 0% |
| 65 to 69 | 28.337% | 20.240% | 12.143% | 0% |
| 70 and over | 32.385% | 24.288% | 16.192% | 0% |
The ATO says the rates that start on 1 April 2027 will be published in March 2027.
Why the percentage keeps falling
Since 1 April 2014 the rebate has been indexed by a rebate adjustment factor, which the Government works out from growth in the Consumer Price Index and the industry weighted average premium increase. When premiums rise faster than inflation, the Government’s share shrinks a little each April. That is why the base-tier rate for under-65s fell from 24.288% to 24.118% on 1 April 2026. Whenever the percentage falls, the share of the premium you pay yourself rises a little faster than the premium does.
What the rebate is worth: worked examples
Because the rebate is a percentage, the easiest way to see its value is per $1,000 of premium (at the rates from 1 April 2026):
| Situation | Tier | Rate | Rebate per $1,000 of premium |
|---|---|---|---|
| Single, 34, income $85,000 | Base | 24.118% | $241.18 |
| Single, 34, income $130,000 (2026–27) | Tier 2 | 8.038% | $80.38 |
| Couple, oldest 67, combined income $150,000 | Base | 28.139% | $281.39 |
| Couple, oldest 72, combined income $230,000 (2026–27) | Tier 1 | 24.118% | $241.18 |
| Single, 45, income $170,000 (2026–27) | Tier 3 | 0% | $0 |
A move of a few thousand dollars in income can change the tier. The single person on $130,000 in 2026–27 gets a third of the rebate of someone in the base tier, and a pay rise that takes them over $164,000 removes it entirely.
How to claim the rebate
There are two ways.
1. As a premium reduction. You tell your insurer which income tier you expect to be in, and it charges you the premium minus the rebate. The Government pays the rebate to the insurer. This is how most people receive it. You can nominate or change your tier by contacting your insurer or using the Medicare rebate claim form.
2. As a refundable tax offset. You pay the full premium and claim the rebate in your tax return. Your insurer sends you (and the ATO) a private health insurance statement after 30 June, and the details are usually pre-filled.
Getting the tier wrong
If you take the rebate as a premium reduction, the ATO checks your actual income when you lodge:
- Nominated too low a tier (you received more rebate than you were entitled to): the excess is added to your tax bill. There’s no penalty, but it can turn an expected refund into a debt.
- Nominated too high a tier (you received less): you get the difference back as a tax offset.
Tell your insurer if a pay rise, bonus, investment loss or salary-sacrifice arrangement is likely to move you into a different tier. Remember that investment losses and reportable super contributions count towards the tier even though they reduce your taxable income.
The rebate and Lifetime Health Cover loading
If you pay a Lifetime Health Cover loading, the rebate isn’t paid on the loading component of your hospital premium (this has been the rule since 1 July 2013). You still get the rebate on the standard part. So a 10% loading costs you the full 10% of the base premium, not 10% of the premium after rebate. The LHC calculator shows your loading and when it comes off.
The rebate and the Medicare Levy Surcharge
The rebate and the surcharge work as a pair. As your income rises through the tiers, the rebate shrinks and the surcharge for not holding hospital cover grows:
| 2026–27, single | Rebate (under 65, from 1 July 2026) | MLS if no hospital cover |
|---|---|---|
| Base tier, $105,000 or less | 24.118% | 0% |
| Tier 1, $105,001 – $123,000 | 16.079% | 1% |
| Tier 2, $123,001 – $164,000 | 8.038% | 1.25% |
| Tier 3, $164,001 or more | 0% | 1.5% |
In tier 3 you get no help with the premium but pay the highest surcharge without cover. Our Medicare Levy Surcharge calculator shows the break-even: the most a hospital policy can cost after the rebate before paying the surcharge becomes cheaper.
Common questions about eligibility
Do pensioners and seniors get a bigger rebate? Older policyholders get higher percentages, because the rate follows the age of the oldest person on the policy. Pensioners are income-tested in the same way as everyone else; there is no separate pensioner rate.
Does the rebate apply to extras-only cover? Yes. General treatment (extras) and ambulance policies from a registered insurer are complying policies. Extras cover doesn’t stop the Medicare Levy Surcharge, though.
Does a dependent child’s income count? No. Only your income and your spouse’s income are counted.
Before you renew
- Check which tier you nominated with your insurer and whether it still matches your expected income.
- If the oldest person on the policy turns 65 or 70, the higher rate applies. Ask your insurer when it takes effect.
- Premiums and rebate percentages both change on 1 April. Compare what you will pay after the rebate, not the headline premium.
To see how the funds themselves compare on benefits paid and complaints, use our directory of Australian health insurers. You can also compare health insurance or read how hospital cover tiers work.
Frequently asked questions
What are the rebate tiers for private health insurance in 2026?
For the 2026–27 income year the base tier is income of $105,000 or less for singles ($210,000 for families), tier 1 is up to $123,000 ($246,000), tier 2 is up to $164,000 ($328,000) and tier 3 is above that. From 1 July 2026 to 31 March 2027 the rebate for people under 65 is 24.118% in the base tier, 16.079% in tier 1, 8.038% in tier 2 and nothing in tier 3.
How much will I get back from private health insurance?
The rebate is a percentage of your premium, from 0% to 32.158% at the rates that apply from 1 April 2026, depending on your income tier and the age of the oldest person on the policy. On each $1,000 of premium, a single person under 65 in the base tier receives about $241. You get it as a lower premium or as a tax offset when you lodge.
Who is eligible for the government rebate?
You need a complying hospital, extras or combined policy with an Australian registered insurer, you must be eligible for Medicare, and your income for surcharge purposes must be below the tier 3 threshold. It doesn't apply to overseas visitors health cover or to the Lifetime Health Cover loading part of a premium.
Do you get more tax back if you have private health insurance?
Not as a deduction: premiums aren't tax deductible. If you didn't take the rebate as a lower premium, you can claim it as a refundable tax offset in your return. And if your income is over the Medicare Levy Surcharge threshold, appropriate hospital cover means you don't pay the 1% to 1.5% surcharge.
Is the rebate higher for people over 65 and over 70?
Yes. The rate depends on the age of the oldest person covered by the policy. From 1 April 2026 the base-tier rebate is 24.118% under 65, 28.139% for 65 to 69 and 32.158% for 70 and over. Pensioners get the rebate on the same income-tested basis as everyone else.
What happens if I choose the wrong income tier?
If you nominate a tier that's too low and receive too much rebate through your premium, the difference is added to your tax bill when you lodge. If you nominate too high a tier, you get the shortfall back as a tax offset. There's no penalty for estimating incorrectly.
