The private health insurance rebate is an amount that the government contributes towards the cost of 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.

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.

Entitlement by income threshold for 2012–13

health-rebate13-14

* The family income threshold is increased by $1,500 for each child

Entitlement by income threshold for 2013–14

health-rebate

* The family income threshold is increased by $1,500 for each child

For more information go to:  Changes to private health insurance rebate and Medicare Levy Surcharge