The government has proposed changes to the Australian Government Rebate for private health insurance. If approved, this could affect some members aged 65 and over from 1 April 2027.
At this stage, nothing has changed because parliament has not approved the proposal.
You may be affected by the proposed changes to the government rebate if you're aged 65 or over, and have an annual taxable income of up to $164,000 for singles, or up to $328,000 for a couple or family.
Currently, the rebate is based on your age and income so you receive a higher rebate on your premium than someone under 65 with the same income.
If the proposal is approved, from 1 April 2027, the rebate will be based on income only, so you'll receive the same rebate on your premium as someone under 65 with the same income. This means you'll receive a lower rebate than you do today and pay more towards the cost of your health cover.
| Family status | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single | $105,000 or less | $105,001 - $123,000 | $123,001 - $164,000 | $164,001 or more |
| Family | $210,000 or less | $210,001 - $246,000 | $246,001 - $328,000 | $328,001 or more |
Applicable rebate percentages and income thresholds are reviewed annually by the Australian Government. Single parents and couples (including de facto couples) are subject to family tiers. For families with children, income thresholds are increased by $1,500 for each Medicare Levy Surcharge dependant child after the first child. Income thresholds may change on 1 July 2027.
For more information, visit the Australian Taxation Office (ATO) website.
| Rebate if the oldest person covered by the policy is | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 years old | 24.118% | 16.079% | 8.038% | 0% |
| 65-69 years old | 28.139% | 20.098% | 12.058% | 0% |
| 70 years and older | 32.158% | 24.118% | 16.079% | 0% |
Find out more on the ATO website
| Rebate if the oldest person covered by the policy is | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 years old | 24.118% | 16.079% | 8.038% | 0% |
| 65-69 years old | 24.118% | 16.079% | 8.038% | 0% |
| 70 years and older | 24.118% | 16.079% | 8.038% | 0% |
The rebate rates will be subject to annual indexation through the Rebate Adjustment Factor (RAF) on 1 April 2028 and subsequent years based on the difference between the CPI and the industry weighted average premium increase. However, the RAF will be set to 1 for 1 April 2027 so the percentages remain unchanged from the prior year, to provide certainty of the rates to apply on 1 April 2027.
Find out more from the Department of Health, Disability and Ageing
To help you stay informed, we'll keep this page updated as more information becomes available.
If you’d like to discuss your cover and understand your options, our team are available to help. You can contact us on 134 135 (Mon-Fri, 8am - 6pm AEDT), visit one of our stores or message us through myBupa.
You may be affected by the proposed changes to the government rebate if you're aged 65 or over and have an annual income of up to $164,000 for singles, or up to $328,000 for a couple or family. Single parent families and couples (including de facto couples) are subject to family tiers.
Check your current Australian Government Rebate eligibility.
No. Your cover, benefits and rebate arrangements remain unchanged so there's no need to make any decisions about your cover at this stage.
If you’d like to discuss your cover and understand your options, our team are available to help. You can contact us on 134 135 (Mon-Fri, 8am - 6pm AEDT), visit one of our stores or message us through myBupa.
We understand our members may be concerned about the proposed change to the Australian Government Rebate that could affect some people aged 65 and over.
We're advocating on behalf of our customers to the government and other stakeholders to ensure the impacts on members are understood. We support policies that help keep private health insurance affordable and accessible for the people who rely on it.
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.