What is my Private Health Insurance government rebate tier?

Most Australians with private health insurance receive a rebate from the Australian Government to help cover the cost of their premiums.

What is the rebate?

The Australian Government Rebate on Private Health Insurance provides a reduction in the premium cost of private health cover. The rebate was designed to encourage more people to take up private health insurance.

It is recognition by the government that consumers who invest in private health insurance are taking responsibility for their own healthcare needs, while also contributing significantly to the Australian healthcare system.

It also recognises the fact that private healthcare users take pressure off the public system, especially with respect to public hospitals.

What factors affect my rebate amount?

The rebate is income tested. Depending on income thresholds, you may be entitled to a reduced rebate.

Different thresholds apply depending on whether you have a single income or a family income.

Your entitlement is also based on the age of the oldest person covered by the policy.

The rebate levels applicable from 1 April 2020 to 31 March 2021* are:

Australian government rebate on private health insurance – Income Thresholds and rates
  Base Tier Tier 1 Tier 2 Tier 3
Singles $90,000 or less $90,001 – $105,000 $105,001 – $140,000 $140,001 +
Couples/Families $180,000 or less $180,001 – $210,000 $210,001 – $280,000 $280,001 +
Under 65 25.059% 16.706% 8.352% 0%
65-69 29.236% 20.883% 12.529% 0%
70+ 33.413% 25.059% 16.706% 0%

Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first. 

*The income thresholds are indexed and will remain the same to 30 June 2021.  

What policies are eligible for the rebate?

The rebate applies to hospital, general treatment and ambulance policies.  It does not apply to overseas cover. 

How can I find out my rebate entitlement?

The best way to find out your rebate entitlement is through the Australian Taxation Office’s private health insurance rebate calculator.

How can I claim my rebate?

If you are eligible for the Australian Government Rebate on private health insurance, you can claim it one of two ways:

  • as a premium reduction through your private health insurer (you pay less upfront to your insurer). If you want to claim your rebate as a reduced premium, contact Westfund; or
  • as a tax offset when lodging your annual tax return. The Australian Taxation Office can provide more information on claiming the rebate through your tax return.

I want to claim my rebate as a premium reduction through Westfund. What do I need to do?

If you choose to receive your rebate as a premium reduction, you will be asked to nominate the tier you expect to fall into in order to avoid a tax liability. You can nominate your tier by contacting us (this will usually be done when you sign on as a Westfund member). You will also need to ensure that you have completed the “Application to receive the Australian Government Rebate on Private Health Insurance as a reduced premium form” in order to receive the rebate.

The easiest way to complete this form is through our Member Online Area  Alternatively, you can download the form on our website, complete it and send it to us.

Still have a question about the Australian Government Rebate on private health insurance?

We are happy to answer any further questions you may have. To speak with a member of our Contact Centre team, call us on 1300 937 838 from 9am – 5pm, Monday to Friday or email enquiries@westfund.com.au. Information sourced from: privatehealth.gov.au