The Australian Government Rebate on Private Health Insurance helps reduce the cost of health insurance premiums. The Rebate you are entitled to will depend on your income and age.

The Australian Taxation Office has specific rules regarding how to define your income for Australian Government Rebate purposes.

Income thresholds, age and the respective Rebate entitlements

Medicare Levy Surcharge income thresholds and rates

Income threshold Base Tier Tier 1 Tier 2 Tier 3
Singles Up to $101,000 $101,001 – $118,000 $118,001 – $158,000 $158,001+
Families Up to $202,000 $202,001 – $236,000 $236,001 – $316,000 $316,001+
Medicare Surcharge 0.0% 1.0% 1.25% 1.5%
 

Rebate by Age

  Base Tier Tier 1 Tier 2 Tier 3
Under 65 24.288% 16.192% 8.095% 0.00%
Aged 65 - 69 28.337% 20.240% 12.143% 0.00%
Aged 70 and over 32.385% 24.288% 16.192% 0.00%

 

Sharing your income tier information with Latrobe Health Services

To ensure your private health insurance premium is calculated correctly, it’s important to provide Latrobe Health Services with accurate information about your income tier and notify us of any changes to your income throughout the year.

If you nominate a lower income tier than your actual earnings and receive a higher Australian Government Rebate on your premium, there’s no penalty from Latrobe Health. However, the Australian Taxation Office (ATO) will reconcile this at tax time, and you may need to repay the difference.

On the other hand, if you select a higher income tier than necessary, you could be eligible for a refund from the ATO when you lodge your tax return.

Keeping your income tier information up to date helps avoid surprises at tax time and ensures you receive the correct rebate.

 

*The above tiers are effective from 1 April 2025. For more information on income thresholds, Latrobe Health encourages members to visit health.gov.au or consult their tax/financial advisor. Alternatively, you can calculate your income by using the calculator at ato.gov.au.