According to Australian law, many individuals and families who pay for private health insurance are eligible for rebates. The amount of money that each family or person can get is based on income. A typical family may get up to 30 cents on the dollar back from a rebate. Families with lower incomes could get more, while families with higher incomes may get less. This rebate plan is known as the Australian Government Rebate on Private Health Insurance.
Who is eligible for rebates?
Not every form of insurance is eligible for the rebate. You must pay through a hospital or general private health fund registered with the Australian government. You must be fully covered by the policy and also be eligible for Medicare. The insurance plan that you are on must comply with the guidelines set in place by the Australian government.
How do I find out if I am eligible?
If you are interested in finding out if you are eligible for a rebate, all you have to do is find out if your health fund and private health insurance policy is eligible for the rebate. You can speak with your insurance company directly, or visit their website. You can also find a list of registered companies here.
What are the possible rebates?
There are three tiers of rebates in this program. Low income rates, medium income rates, and high income rates. A single person earning $88,000 or less and a family earning $176,000 and less will give you rebates with these rates:
- 30 per cent, for policy holders under 65 years
- 35 per cent, for holders between 65 and 69 years
- 40 per cent, for holders older than 69 years.
If you make between $88 001 and $102 000 as a single or between $176 001 and $204 000 as a family, your rebates will look like:
- 20 per cent under 65 years
- 25 per cent between 65 and 69 years
- 30 per cent, over 70 years
If you make $102 001 and $136 000 as a single or $204 001 and $272 000 as a family, your rebates will look like:
- 10 per cent under 65 years
- 15 per cent between 65 and 69 years
- 20 per cent over 70 years
If you make more than the above rates, you will receive no rebate. The thresholds increase each year. If you have children, the threshold is increased by $1500 for each child after the first.
Where do I apply for rebates?
You can apply for your insurance rebate by asking for a premium discount from your health fund or by visiting the Australian Tax office. You can learn more about claiming rebates from the Human Services website.
To get better private health cover, apply for coverage before age 30. That way, you will avoid the fees associated with obtaining hospital coverage later in life. The sooner you apply for benefits, the less you will have to pay and the higher your rebates will be.