Private Health Insurance Rebate changes

If you have private health insurance, you may be eligible for the Private Health Insurance Rebate. The rebate is means tested against your single or family income (i.e. if you have a partner, the family income test applies to your combined income). Incomes and rebate percentages are summarised below:

Single	$88,000 or less	$88,001 – $102,000	$102,001 – $136,000	$136,001 or more
Family	$176,000 or less	$176,001 – $204,000	$204,001 – $272,000	$272,001 or more
AGE
Under 65	30%	20%	10%	0%
65 – 69	35%	25%	15%	0%
Over 70	40%	30%	20%	0%

 

From April 1, 2014, the rebate percentages were adjusted by a rebate adjustment factor. This means all rebates have been slightly reduced. If you started or renewed your policy on or after April 1, 2014, your rebate percentages will be as follows:

Single	$88,000 or less	$88,001 – $102,000	$102,001 – $136,000	$136,001 or more
Family	$176,000 or less	$176,001 – $204,000	$204,001 – $272,000	$272,001 or more
AGE
Under 65	29.040%	19.360%	9.680%	0%
65 – 69	33.880%	24.200%	14.520%	0%
Over 70	38.720%	29.040%	19.360%	0%

 

Normally, the rebate percentage is applied to your premium when you purchase or renew your health insurance. If the percentage applied by your insurer is different to the percentage you are eligible for, this will result in either a tax liability or a tax offset when you do your 2014 tax return.

Read more about the changes to the Private Health Insurance Rebate on the ATO website