Confused about the rebate? We're here to help.

The private health insurance rebate was introduced by the Federal Government to help Australians meet their health cover costs.

If you currently hold a green or blue Medicare card, you're entitled to claim the rebate on both Hospital and Extras cover when applying for private health cover.

Alternatively, you can choose to pay full contributions through the year and then claim the rebate back at the end of the financial year through your tax return.

 HIF rebate information

Since 1 July 2012, the Federal Government Rebate on Private Health Insurance became means-tested, and the Government later imposed further changes which came into effect on 1 April 2014. Regretfully, the changes are beyond HIF's control and affected members of all private health funds across Australia.

How the means-tested rebate may affect you.

Since 1 April 2014, the Australian Federal Government now indexes the private health insurance rebate to a maximum of the current Consumer Price Index (CPI). This means if you're currently entitled to a rebate and private health insurance premiums continue to increase above CPI each year, the Government’s contribution to you through the rebate (as a percentage of the cost of your private health cover) will get smaller and smaller each year. Furthermore, this will be calculated at an industry level, meaning that even if your HIF premiums haven't increased, your rebate percentage will still be reduced. Effectively, this means that from 1 April 2016, the rebates accessible will be as follows:

Private Health Insurance salary thresholds & rebate tiers (1 April 2016 - 31 March 2017)

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 - $210,000 $210,001 - $280,000 $280,001 or more
AGE APPLICABLE PRIVATE HEALTH INSURANCE REBATE
UNDER 65 26.791% 17.861% 8.930% 0%
65 - 69 31.256% 22.326% 13.395% 0%
OVER 70 35.722% 26.791% 17.861% 0%