The Australian Government Private Health Insurance Rebate

While St.LukesHealth has deferred its April 1, 2021 premium increase until July 1  to provide financial relief to members,  you may notice that your premium payment reflects a different amount than you have been previously paying.

This is because the Australian Government has adjusted the Private Health Insurance Rebate amount, the amount the government contributes towards the cost of your health insurance. It is recognised by the government that Australians with private health insurance are making a substantial financial contribution not only to their own healthcare but the overall Australian health system by taking pressure off the public system.

What is the rebate?
The Australian Government Private Health Insurance Rebate is the amount the government contributes towards the cost of your health insurance premiums. The rebate is income tested and can be claimed for premiums paid for a health insurance policy.

How does the rebate work?
The Australian Government has set four income thresholds with four corresponding rebate tiers. If you fall within the lowest income threshold, you are eligible for the full entitlement under the “Base Tier”. For those who fall into the thresholds that correspond with Tier 1 and tier 2, you will be provided with a lower level of rebate, while those who fall into Tier 3 are not eligible for rebate.

In addition to the income test, there is also an aged-based test. A higher rebate will be applied to anyone aged between 65 and 69. This increases again for anyone over the age of 70.

Each year, the Australian Government uses a Rebate Adjustment Factor to adjust its rebate percentages. The rebate adjustment factor for 2021 is 0.982.

What will the rebate rates be from April 1, 2021?
The following income thresholds will be effective from April 1, 2021 until March 31, 2022:

Policy Type Base Tier Tier 1 Tier 2 Tier 3
Single $90,000 or less $90,001 - $105,000 $105,001 - $140,000 $140,001 or more
Couple/Family $180,000 or less $180,001 to 210,000 $210,001 - $280,000 $280,001 or more

Applicable Private Health Insurance Rebate

Age Tier 1 Tier 2 Tier 3 Tier 4
Under 65 24.608% 16.405% 8.202% 0%
65-69 28.710% 20.507% 12.303% 0%
Over 70 32.812% 24.608% 16.405% 0%

How can I claim the rebate?
You can claim the private health insurance rebate as a reduction in the amount of private health insurance premiums you pay. You can do this by filling in the St.LukesHealth Government Rebate form and returning it to

Alternatively, the Australian Taxation Office will calculate your private health insurance rebate when you lodge your tax return. This amount is a refundable tax offset.

What if I select the wrong rebate tier?
Don’t worry if you nominate the wrong tier.

If you nominate a higher tier than your actual income, you will receive a lower rebate. If that happens, you will receive a tax offset through your tax return for the financial year.

If you nominate a lower tier than your actual income, you will receive a higher rebate. If this happens, you may incur a tax debt. There are no additional penalties for estimating the wrong tier. 

Your rebate information will be auto-filled as part of your tax return.

For more information about the rebate, visit or

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