Australian Government Rebate on private health insurance

The Australian Government provides a rebate on the cost of private health insurance. Persons eligible for Medicare and who hold a private health insurance product may be eligible for the rebate. The rebate tier applicable to your personal situation is dependant on family status, age and income.

How do I know what rebate applies to me?

Step 1: Understand your individual situation

For information on the changes to the rebate please visit the ATO information page.

Step 2: Calculate your income for Rebate purposes

Using the ATO Rebate calculator you can find out your income tier. 

Alternatively you can:

• contact the ATO on 132861, or
• contact your tax accountant. financial advisor
  

Step 3: Determine your level of rebate and your rebate tier 

Step 4: Advise CUA Health to claim your rebate as a premium reduction

To change your rebate tier to commence from 1 July 2012, you can contact us on 1300 499 260.

Alternatively, you can choose to claim your rebate in one of these two ways:

• As a refundable tax rebate in your annual tax assessment, or
• As a direct payment available from Medicare offices

What if I choose to not have Private Health Insurance?

If you have an income for MLS purposes of more than $84,000 as an individual or $168,000 as a family and you or any of your dependants (including your spouse) do not hold a complying private health insurance hospital policy, you are likely to have to pay the MLS. The MLS is in addition to the Medicare levy. You will pay a higher MLS the more you earn – between 1 per cent and a maximum of 1.5 per cent of your income. (see the table above).

More information on the changes to the Australian Government Rebate on private health insurance and Medicate Levy Surcharge is available at the following:

• Australian Taxation Office
• Department of Human Services
• PrivateHealth.gov.au