The Australian Government Rebate on private health insurance (the ‘rebate’) is an initiative whereby the Government may contribute to a percentage of the cost of a member’s private health insurance. If you’re an Australian resident who qualifies for Medicare and holds private health insurance, you may be entitled to receive the rebate depending on your income.
If you claim the rebate as a reduction in your premium, the new indexed percentage will become effective from 1 April for any payments made after this date. This change will happen automatically.
The rebate is still subjected to income testing and the new values of the rebate are reflected in the tables below.
| Income | up to $88,000 | $88,001 - $102,000* | $102,001 – $136,000* | More than $136,000* |
| Rebate Tiers | Base Tier | Tier 1 | Tier 2 | Tier 3 |
| Rebate | ||||
| up to 65 years | 29.040% | 19.360% | 9.680% | 0% |
| 65 - 69 years | 33.880% | 24.200% | 14.520% | 0% |
| 70 years and over | 38.720% | 29.040% | 19.360% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
| Income | up to $176,000 | $176,001 – $204,000* | $204,001 – $272,000* | More than $272,000* |
| Rebate Tiers | Base Tier | Tier 1 | Tier 2 | Tier 3 |
| Rebate | ||||
| up to 65 years | 29.040% | 19.360% | 9.680% | 0% |
| 65 - 69 years | 33.880% | 24.200% | 14.520% | 0% |
| 70 years and over | 38.720% | 29.040% | 19.360% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
The rebate and MLS apply to overseas visitors that are covered under a Reciprocal Healthcare Agreement (RHCA) with Australia and are eligible for a Reciprocal Medicare Card. The countries that have an RHCA with Australia include: Belgium, Finland, Ireland, Italy, Malta, the Netherlands, New Zealand, Norway, Slovenia, Sweden and the United Kingdom.
If you’re an overseas visitor to Australia and are entitled to a Reciprocal Medicare Card under a RHCA, the rebate is available to you under the following circumstances:
The MLS is only applicable if you have a working visa and:
If the above criteria applies to you, this means that the changes to both the rebate and the MLS will be as per the below tables. You can nominate your rebate tier online by logging in to myBupa.
| Income | up to $88,000 | $88,001 - $102,000* | $102,001 – $136,000* | More than $136,000* |
| Rebate Tiers | Base Tier | Tier 1 | Tier 2 | Tier 3 |
| Rebate | ||||
| up to 65 years | 29.040% | 19.360% | 9.680% | 0% |
| 65 - 69 years | 33.880% | 24.200% | 14.520% | 0% |
| 70 years and over | 38.720% | 29.040% | 19.360% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
| Income | up to $176,000 | $176,001 – $204,000* | $204,001 – $272,000* | More than $272,000* |
| Rebate Tiers | Base Tier | Tier 1 | Tier 2 | Tier 3 |
| PHI Rebate | ||||
| up to 65 years | 29.040% | 19.360% | 9.680% | 0% |
| 65 - 69 years | 33.880% | 24.200% | 14.520% | 0% |
| 70 years and over | 38.720% | 29.040% | 19.360% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
There may be some good financial reasons for keeping your private health insurance. When it comes down to it, the peace of mind your health cover gives you and your family is just as important.
If you decide to drop your hospital cover, depending on your income you may have to pay the MLS, which could end up costing you more.
Also, keep in mind that to avoid paying the Australian Government Lifetime Health Cover loading you need to take out and maintain hospital cover by 1 July following your 31st birthday.
