What is the rebate?

The Australian Government Rebate is a government contribution towards the cost of your private health insurance premium.

The rebate amount is based on your age and income. Income tiers and thresholds determine who can receive the rebate, and how much. Different thresholds apply to singles and families. Higher income earners may receive a lower rebate, or no rebate at all.

You can apply the rebate as an ongoing reduction to your premium, or claim it as a lump sum at tax time.

The Australian Government reviews private health insurance rebate rates and income thresholds every year. On 1 July 2026, the government updated income thresholds. If you have Medicare, these changes may apply to you.

You can find the income thresholds on the Australian Taxation Office (ATO) website.

 View the ATO income thresholds

If you currently claim the rebate as a premium reduction, you can check which rebate tier you’ve selected and change it at any time in myBupa. If you aren’t claiming the rebate as a premium reduction and would like to apply, you can register in myBupa. 

If you don't change your rebate tier through Bupa, it will be adjusted in your tax return. You won't pay a penalty for not letting the ATO know, but you might get a tax refund or tax liability when you lodge your tax return. 

Medicare Levy Surcharge (MLS)

 See how much extra you might pay in tax if you don’t have hospital cover. Calculate your MLS

Lifetime Health Cover (LHC) loading

 Take out hospital cover before you turn 31 to avoid higher premiums in the future. LHC explained

Age-based discount

 Enjoy a discount on your premiums when you get hospital cover before you turn 30. Explore discount

If you don’t apply for the rebate through Bupa, you’ll continue to pay your full premium. You can then claim the rebate as a lump sum when you lodge your tax return.

If you currently hold private health cover and haven’t applied for the rebate, there are two ways you can register. You can contact us and we’ll send you an application form, or register through myBupa. To do this:

  1. Sign in to myBupa
  2. Select Cover
  3. Select Register for rebate
  4. From here, you’ll be guided through the steps to apply for the rebate.

If your income changes, any rebate you’re entitled to might change as well. You can manage your rebate tier by contacting us, or updating it in myBupa. To do this:

  1. Sign in to myBupa
  2. Select Cover
  3. Select Change my rebate tier
  4. From here, you’ll be guided through the steps to update your rebate tier.

If you don't change your rebate tier through Bupa, it will be adjusted in your tax return. You won't pay a penalty for not letting the ATO know, but you might get a tax refund or tax liability when you lodge your tax return.

For more detailed information, visit the Australian Tax Office.

The Australian Government reviews the rebate amounts each year on 1 April, and may adjust them to account for changes to the consumer price index and premiums across the industry. 

If the rebate amounts change, we will reflect any changes to the percentage automatically. You might notice a small change in your premium at this point, but you can check or change your current rebate percentage at any time through myBupa.

If you hold a reciprocal Medicare card, you may be entitled to receive the rebate, depending on your income and what type of cover you have:

  • If you have extras cover in addition to your overseas cover, the rebate applies to your extras only.
  • If you have Reciprocal Health Cover - Basic, you may be eligible for the rebate on your hospital cover. This is a kind of cover that could help you avoid the Medicare Levy Surcharge.

For more information, visit the Australian Taxation Office.
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