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Rebate on Private Health Insurance

 

Lifetime Health Cover (LHC) loading and the private health insurance rebate

The Australian Government Rebate on private health insurance (the ‘rebate’) is an initiative whereby the Government contributes to 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.

Rebate update: The Australian Government Rebate is now indexed annually from 1 April each year.

How does the rebate affect me?

If you claim the rebate as a reduction in your premium, the new indexed percentage is 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.

For Singles   For Couples/Families
How are singles affected? Show
Income up to $90,000 $90,001 - $105,000* $105,001 – $140,000* More than $140,000*
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%
Note: Rebate percentages are effective for payments made from 1 April 2014 and are indexed annually. Thresholds are effective 1 July 2014 and are indexed annually.
How are couples/families affected? Show
Income up to $180,000 $180,001 – $210,000* $210,001 – $280,000* More than $280,000*
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%
Note: Rebate percentages are effective for payments made from 1 April 2014 and are indexed annually. Thresholds are effective 1 July 2014 and are indexed annually. *On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples. For more information go to ato.gov.au.
How are Overseas Visitors affected? Show

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:

  • You have extras cover - then the rebate is available on your extras cover; OR
  • You have Reciprocal Health Cover - then the rebate is available on your Reciprocal Health Cover

The MLS is only applicable if you have a working visa and:

  • earn more than $90,000 as a single person or $180,000 a year as a couple/family; AND
  • don’t have an appropriate level of private hospital visitors cover in combination with Reciprocal Health Cover

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.

Singles

Income up to $90,000 $90,001 - $105,000* $105,001 – $140,000* More than $140,000*
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%

Couples/families

Income up to $180,000 $180,001 – $210,000* $210,001 – $280,000* More than $280,000*
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%
Note: Rebate percentages are effective for payments made from 1 April 2014 and are indexed annually. Thresholds are effective 1 July 2014 and are indexed annually. *On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples. For more information go to ato.gov.au.

Why keep your private health insurance?

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.

Choice - you can generally choose your own doctor and where you're treated.
Avoid long waiting lists - if you choose to be treated in a private hospital, you may not have to worry about public hospital waiting lists.
Extras services - you can also enjoy cover for a wide range of extras services generally not covered by Medicare - dental, optical, physio, chiro, massage and more!

What's next?

See our list of FAQs
Still have questions for us? Check out our frequently asked questions on a range of rebate-related information, including how to nominate your rebate tier with us to avoid paying the difference at tax time.
Contact us
If you're a Bupa member and you can't find the information you need online, you can email us via myBupa.
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