Tax time is approaching, and with it comes a few important updates to how your private health insurance is calculated, particularly when it comes to the Australian Government Rebate on private health insurance (AGR) and the Medicare Levy Surcharge (MLS).
The AGR is designed to help make private health insurance more affordable. If you’re an adult* and hold eligible domestic Hospital or Extras cover, you may receive a percentage of your premium back either as a reduction in your premiums throughout the year or as a refund when you lodge your tax return.
The rebate you receive depends on:
- Whether you hold a single or family policy
Income thresholds are changing this year, which are used to work out if you will pay the MLS.
Updated income thresholds from 1 July 2026
| Base Tier | Tier 1 | Tier 2 | Tier 3 |
|---|
Singles | Less than $105,000 | $105,001 - $123,000 | $123,001 - $164,000 | $164,001 and above |
Families | Less than $210,000 | $210,001 - $246,000 | $246,001 - $328,000 | $328,001 and above |
MLS | 0.0% | 1.0% | 1.25% | 1.5% |
Family thresholds increase by $1,500 for each dependent child after the first.
What does this mean for you?
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.auor call us on 1300 134 060.
Accessing your Tax Statement
You can access your 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 Centrefrom 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 pageor 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:
- Please contact the ATO on 13 28 61, visit the ATOwebsite or speak to your tax accountant.
*Not a child dependant or student dependant