Private Health Insurance Rebate 2026: Tiers & Calculator
The private health insurance rebate is the Australian Government's contribution to your premium: from 1 April 2026 it is up to 24.118% if everyone on the policy is under 65, and nil once your 2026-27 income for surcharge purposes passes $164,000 as a single or $328,000 as a family (ATO, checked 10 October 2026). Use the rebate calculator to see your tier, rate and dollar amount.
Private health insurance rebate calculator
Your rebate tier, percentage and dollar amount for the 2026-27 income year, from the ATO's published thresholds and rates. An estimate only: the ATO works out your entitlement from your tax return.
Base tier · single thresholds · oldest person under 65
$482
Estimated rebate on a $2,000 yearly premium in 2026-27, paid evenly through the year.
| Income tested | $90,000 |
|---|---|
| Top of the base tier (single) | $105,000 |
| Rebate rate, 1 July 2026 to 31 March 2027 | 24.118% |
| Rebate rate from 1 April 2027 | Not yet published |
| Estimated rebate for the year | $482 |
The rates from 1 April 2027 are set each March, so the estimate assumes the current rate carries on to 30 June.
Assumes the same family status all year and premiums paid evenly. Your tax claim code, a spouse who joined part-way through the year and prepaid premiums can change the result. The rebate isn't paid on Lifetime Health Cover loading. General information, not tax advice.
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 10 October 2026. The calculator at the top of the page applies the same tables to your income, age and premium. A bill now before the Senate would remove the higher rates for people 65 and over from 1 April 2027; it is covered below.
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 your rebate percentage changes every 1 April
Since 1 April 2014 every rebate percentage has been adjusted each 1 April by a rebate adjustment factor, which the Department of Health, Disability and Ageing works out from growth in the Consumer Price Index and the industry’s average premium increase. The new percentages apply to premiums paid on or after 1 April, so an income year has two rates: one from 1 July to 31 March and another from 1 April to 30 June.
When premiums rise faster than inflation, the factor is below one and the Government’s share shrinks a little. 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.
You don’t need to do anything when the rate changes. If you take the rebate as a premium reduction, your insurer applies the new percentage; if you claim it at tax time, the ATO applies each period’s rate to the premiums you paid in it.
Proposed change: the higher rebate for over 65s
The higher rebate for people aged 65 and over would end on 1 April 2027 under a Government bill now before the Senate. The Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 would make the rebate depend on income alone, so a policy whose oldest member is 65 to 69, or 70 or over, would get the same percentage as one where everyone is under 65.
| Item | Detail |
|---|---|
| What it changes | Removes the higher rebate percentages for people 65 and over. The income tiers and their annual indexation don’t change. |
| Start date if passed | 1 April 2027. It would apply to premiums paid on or after that date for cover from that date. |
| Status at 10 October 2026 | Passed the House of Representatives on 16 September 2026 and introduced in the Senate on 17 September 2026, where it is still before the Senate. It is not law. |
| Government estimate | A reduction in spending of $2,994.7 million over the four years to 2029-30 (explanatory memorandum) |
Until the bill passes both Houses and receives Royal Assent, nothing changes: the 65 to 69 and 70-and-over rates in the tables above still apply. Check the bill’s status on the Parliament of Australia website before relying on either set of rates. Our guide to seniors health insurance covers what else matters for over 65s and over 70s.
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.
Excess private health reduction or refund on your notice of assessment
A line on your notice of assessment called Excess private health insurance refund or reduction (rebate reduced) means you received more rebate during the year than you were entitled to, and the ATO has recovered the difference as a tax liability. It’s an adjustment, not a penalty. It almost always comes from taking the rebate as a premium reduction at a higher percentage than your income turned out to support: you nominated the base tier, say, and a pay rise put you in tier 1.
The ATO’s own example: a single 67-year-old with a $2,400 premium nominated the base-tier rate for 2025-26, but his income for surcharge purposes came in at $102,000, which is tier 1 for that year. The rebate he’d received was $194 more than his entitlement, and that $194 appeared on his notice of assessment under that heading.
| What happened during the year | What the ATO does when you lodge | Where it shows on your notice of assessment |
|---|---|---|
| You received more rebate than your income entitled you to | Recovers the difference as a tax liability | Excess private health insurance refund or reduction (rebate reduced) |
| You received less rebate than you were entitled to, or none | Pays the shortfall as a refundable tax offset | Added to your other tax offsets as a credit |
| You received the right amount | Nothing | No adjustment |
Source: ATO, claiming the private health insurance rebate (checked 10 October 2026).
To avoid a debt next year, ask your insurer to move you to the tier you now expect to be in. If your income is close to a threshold, nominating the higher tier means a slightly higher premium during the year and a refundable offset, rather than a bill, if you guessed high.
The rebate and Lifetime Health Cover loading
If you pay a Lifetime Health Cover loading, sometimes called the age 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.
Does the rebate apply to extras and ambulance cover?
Yes. privatehealth.gov.au says the rebate applies to hospital, general treatment (extras) and ambulance policies from Australian registered health insurers, and the ATO lists hospital, extras and combined policies as eligible. The percentage is the same for each: it depends on your income tier and the age of the oldest person on the policy, not on the type of cover.
| Type of policy | Rebate applies? | Counts for the Medicare Levy Surcharge? | Counts for Lifetime Health Cover? |
|---|---|---|---|
| Hospital | Yes, except on any Lifetime Health Cover loading | Yes, if the excess is within the limit | Yes |
| Extras (general treatment) only | Yes | No | No |
| Combined hospital and extras | Yes | Yes, through the hospital part | Yes, through the hospital part |
| Ambulance only | Yes | No | No |
| Overseas visitors or overseas student cover | No | n/a | No |
Sources: privatehealth.gov.au rebate, Medicare Levy Surcharge and Lifetime Health Cover pages; ATO, claiming the private health insurance rebate (checked 10 October 2026).
So an extras-only policy gets the rebate, but it won’t stop the surcharge if your income is over the threshold. For that you need hospital cover; see hospital cover tiers.
Common questions about eligibility
Do pensioners and seniors get a bigger rebate? Older policyholders get higher percentages for now, because the rate follows the age of the oldest person on the policy (see the proposed change above). Pensioners are income-tested in the same way as everyone else; there is no separate pensioner rate. Our health insurance for seniors guide covers the rest.
Does a dependent child’s income count? No. Only your income and your spouse’s income are counted.
Is the rebate higher with some funds? No. Every registered insurer applies the same Government percentage. What differs between funds is the premium it’s applied to.
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
How do I calculate my private health insurance rebate?
Work out your income for surcharge purposes (taxable income plus reportable fringe benefits, net investment losses and reportable super contributions, combined with your partner's if you have one), find your tier for the income year, then apply the percentage for the age of the oldest person on the policy to your premium, leaving out any Lifetime Health Cover loading. A single person under 65 in the base tier gets 24.118% from 1 April 2026, so $482.36 on a $2,000 premium. The calculator on this page does it for you.
Is the rebate different at HBF, Bupa or Medibank?
No. The rebate is the Australian Government's, so every registered insurer applies the same percentage for your income tier and the age of the oldest person on the policy. Only the premium it's applied to differs between funds and policies.
What does excess private health reduction or refund mean on my notice of assessment?
It means you received more rebate as a premium reduction during the year than your income entitled you to, so the ATO has added the difference to your tax bill. It usually happens when you nominated a lower income tier than your income turned out to be. If it went the other way and you received too little, the shortfall is paid to you as a refundable tax offset instead.
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, for now. 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. A Government bill before the Senate (as at 10 October 2026) would remove the higher rates for people 65 and over from 1 April 2027; it is not law yet.
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.