What if …. we talked about tax

HIF News

Important changes to income thresholds from 1 July, 2024   

Most Australians with private health insurance receive the Australian Government Rebate on their insurance to help cover the cost of their premiums. Your rebate depends on your age and is income tested based on your single or family policy type.

On 1 July 2024, the income thresholds used to calculate the Australian Government Rebate on private health insurance and Medicare Levy Surcharge increased again. 

If you’re an adult* and hold domestic Hospital and Extras cover, you may be entitled to apply the rebate to your premium contributions. 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. If you hold Overseas Visitor Health Cover, you are not eligible for the rebate.

Income thresholds are also used to work out if you have to pay for the Medicare Levy Surcharge and the actual rate you will pay.

What are the increases to the income thresholds?


Pre 1 July 2024

From 1 July 2024






Base tier

$93,000 or less

$186,000 or less

$97,000 or less

$194,000 or less

Tier one

$93,001 – $108,000

$186,001 – $216,000

$97,001 – $113,000

$194,001 – $226,000

Tier two

$108,001 – $144,000

$216,001 – $288,000

$113,001 – $151,000

$226,001 – $302,000

Tier three

$144,001 or more

$288,001 or more

$151,001 or more

$302,001 or more

Note: The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child.

What does this mean for me?

Income tiers aren’t updated on your membership automatically. If you have an income tier applied to your membership that is different to your actual income, you could receive a higher or lower rebate on your premiums than your income entitlement.

Don't worry, you’re not penalised if your income tier is incorrect, it just means you might get a tax refund or tax liability when you lodge your tax return. 

If you and your partner or family members covered by your policy don’t hold the appropriate domestic Hospital cover and your income is above the base tier threshold, you may have to pay the Medicare Levy Surcharge. To find out more about the surcharge, click here.

How can I update my Australian Government Income Tier?

If you would like to update your income tier, you can email us at rebate@hif.com.au or call us on 1300 134 060.

Accessing your Tax Statement

You can access you tax statement via the Australian Tax Office (ATO) or via our Online Member Centre.

Your tax statement information is available in the ATO myGov portal, The ATO aim to pre-fill your tax return by 20 July. Members are also able to view their statements via the Online Member Centre from 3 July. 

To access the Online Member Centre, you need to make sure you’re registered with the Online Member Centre

For more information about your HIF tax statement, visit our members tax information page or call us on 1300 134 060.

For advice on your individual tax situation please contact your tax advisor or the Australian Tax Office on 13 28 61.

For further tax information: 

* Not a child dependant or student dependant

Category:HIF News