Private Health Insurance Rebates
The Federal Government 30% Rebate
Families and individuals that pay private health insurance premiums are eligible for the Federal Government 30% Rebate on private health insurance. Anyone who pays hospital and/or general private health fund premiums for a Complying Health Insurance Policy to a registered health fund can get a 30% reduction on the cost of their private health insurance. If you pay the cost of the premiums and you are the policy holder, then you are eligible for the Federal Government 30% Rebate; even if you are not personally covered by the policy, for example if the policy is for your children. However, all people covered by the policy must be eligible for Medicare
On 1 April 2005 new Rebate amounts were introduced. These applied to persons aged 65 and over. This meant that people aged from 65 to 69 are eligible to receive a 35% Rebate and people aged 70 and over are eligible to receive a 40% Rebate.
The Federal Government 30% Rebate is not means tested. It does not matter how much you earn or the level of your family income. If you have hospital and/or general private health insurance that is a Complying Health Insurance Policy, you can claim the Federal Government 30% Rebate.
Regardless of whether you pay your premiums monthly, yearly in instalments or in advance, there are three ways to claim the Federal Government 30% Rebate.
1. From your fund
Ask your fund to provide the Rebate as a premium reduction, reducing your upfront costs. To claim the Federal Government 30% Rebate as a premium reduction you will need to register with your health fund, who will send you a form or advise you what you need to do.
2. From a Medicare office
Where you have paid the full, upfront cost, you can receive a cash payment from the Government through your local Medicare office or by lodging the claim form by post. To claim the Federal Government 30% Rebate as a cash payment you need to fill in a claim form below (or available at your Medicare office) and attach a special receipt from your registered health fund. If claiming at a Medicare office, a cash limit applies. If your benefit is over the cash limit, you will get a cheque payment instead.
Only premuims paid in the current or the immediately previous financial year can be claimed via Medicare Australia. Claims prior to this period need to claimed from the Australian Taxation Office (ATO).
3. From the Australian Taxation Office
The Federal Government 30% Rebate may be claimed back on your annual income tax return if you have paid the full, upfront cost. Your health fund will give you a statement at the end of the financial year to help you complete your tax return.
Are all private health fund members eligible?
Not all private health funds and private health insurance policies are eligible to receive the Federal Government 30% Rebate. The Federal Government 30% Rebate is only available to people who hold a Complying Health Insurance Policy with a registered health fund/insurer. Check with your health fund to see if they are registered and if your private health insurance policy is eligible for the Rebate. Overseas visitor health cover is not eligible for the 30% Rebate.
The Medicare levy surcharge
The current Medicare levy surcharge will remain in place. The Medicare levy surcharge
only applies to income earners who earn over the Medicare levy surcharge threshold and who choose not to have private hospital health insurance.
More information
For more information about the administration of the Federal Government 30% Rebate on Private Health Insurance, please call Medicare Australia on 1300 554 463.
Last updated: 10 November, 2009