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For an explanation of terms used, see Definitions.
The private health insurance rebate is an amount that the government contributes towards the cost of your private health insurance premiums. The majority of people with private health insurance claim the rebate as a reduction in the amount of premiums they pay to their private health insurers (known as premium reduction).
From 1 July 2012, the private health insurance rebate is income tested, based on income for surcharge purposes. This means that if you have a higher income, your rebate entitlement may be reduced, or you may not be entitled to receive any rebate at all.
See the Private health insurance rebate income tests to find out what percentage of rebate you are entitled to receive in 2012–13 and 2013–14.
You will be income tested on your share of the private health insurance policy. This may mean that your household will get more than one annual statement from your insurer for the one policy if there was more than one adult on the policy when the premiums were paid.
There have also been changes to Medicare levy surcharge. If you and all your dependants do not have an appropriate level of private patient hospital cover for the full year and your income is more than the relevant income test threshold, a higher rate of Medicare levy surcharge may apply.
See Completing your 2013 tax return for more information on:
You will also find information on how to complete your tax return if you:
When you lodge your tax return, we will test your income against the three income thresholds to determine the level of rebate you are entitled to receive. Depending on how you claimed your rebate and the level of rebate you claimed, this may result in a tax debt or a tax offset. See Private health insurance income thresholds.
No rebate on lifetime health cover (LHC) loading from 1 July 2013
The government no longer pays the private health insurance rebate on LHC loading applied to the costs of a policy from 1 July 2013.
For an example, see No rebate on LHC loading.
Indexing the amount on which the rebate will be paid from 1 April 2014
From 1 April 2014, the private health insurance rebate will be adjusted annually by a factor representing the ratio of the proportional increase in the consumer price index to the proportional average premium increase.
Find out more
Capping of the rebatable amount of the health insurance policy
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