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.
Rebate update: The bills proposing changes to the private health insurance LHC loading and rebate were passed on 27 June 2013 and came into effect on 1 July 2013.
If you currently pay the Lifetime Health Cover (LHC) loading on your hospital cover, look out for information we’ll be sending explaining what these changes mean and how you will be affected.
Plus, look out for regular updates we’ll be sharing on the Bupa blog including:
You won't need to do anything if your adjusted taxable income in this financial year is likely to be:
^Including single parent families and de facto couples
If you are a single person earning more than $88,000 a year or a couple/family earning more than $176,000 a year, you may now be entitled to a lower rebate. Income thresholds for the rebate and MLS are effective 1 July 2013 and are indexed annually.
| 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 | 30% | 20% | 10% | 0% |
| 65 - 69 years | 35% | 25% | 15% | 0% |
| 70 years and over | 40% | 30% | 20% | 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 | 30% | 20% | 10% | 0% |
| 65 - 69 years | 35% | 25% | 15% | 0% |
| 70 years and over | 40% | 30% | 20% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
The rebate and MLS apply to overseas visitors that are covered under a Reciprocal Health Care 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 | 30% | 20% | 10% | 0% |
| 65 - 69 years | 35% | 25% | 15% | 0% |
| 70 years and over | 40% | 30% | 20% | 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 | 30% | 20% | 10% | 0% |
| 65 - 69 years | 35% | 25% | 15% | 0% |
| 70 years and over | 40% | 30% | 20% | 0% |
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.50% |
Note: Thresholds are effective 1 July 2013 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.
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.
If you're a Bupa member and you can't find the information you need online, you can email us via myBupa.
