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Are you claiming too much rebate on your private health insuranceThe Federal Government provides a rebate on private health insurance premiums where individual or family incomes fall below certain thresholds.  The rebate phases out as incomes rise.

We often see taxpayers with relatively ‘simple’ tax affairs have an amount payable with their tax assessment and the reason is they have claimed too much private health insurance rebate on their premiums.  The excess is required to be paid back with their tax assessment.

This problem can be simply fixed by advising their health insurer that their income is above the threshold and not to take into account the rebate when calculating premiums.

While income thresholds have been frozen until 1 July 2018, the rebate percentage is adjusted on 1 April every year.

The Department of Health has released the following Private Health Insurance Rebate Percentages effective from 1 April 2017 to 31 March 2018.

  Income thresholds
Status Base tier Tier 1 Tier 2 Tier 3
Single $90,000 or less $90,001 - 105,000 $105,001 - 140,000 $140,001+
Family $180,000 or less $180,001 - 210,000 $210,001 - 280,000 $280,001+
Age Rebate for premiums paid, 1 April 2017 - 31 March 2018
Under 65 25.934% 17.289% 8.644% 0%
65 - 69 30.256% 21.612% 12.966% 0%
70+ 34.579% 25.934% 17.289% 0%
Note: Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.


If you are not sure whether you are receiving the correct level of rebate on your premiums, we recommend you contact your private health insurance provider. For further information on how your private health insurance rebate impacts your tax assessment please contact your usual Hanrick Curran advisor or alternatively, Tax Partner, Jamie Towers on 07 3218 3900.




Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.