Australian Government Rebate
The Australian Government Rebate helps you meet the cost of your private health insurance by reducing your premiums.
You may be aware that the Australian Government recently made some changes to the rebate on private health insurance. From 1 July 2012, the rebate percentage you’re entitled to depends on your age and income level. This is referred to as ‘income testing’.
Single people with an income* of less than $84,000 a year and couples or families with an income of less than $168,000 are not likely to be affected by this change.
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Did you know that you may not have to pay the full cost of your health cover?
The Australian Government Rebate helps you pay for your private health insurance premium. If you’ve already got health insurance, chances are you’re already getting a rebate. But if you don’t, or want to know how it works, this video will help explain.
What does this mean for you?
We've created this handy tool to help you calculate your rebate percentage on your health insurance premium.
Simply enter the age of the oldest person on your cover.
Select 'A single income' if your relationship status is single and you're only nominating a single income.
Select 'A family income' if you're married or in a de facto relationship and are nominating a combined income of two adult policy holders, or are a single-parent family.
Find your new rebate percentage
Based on your selections you'd be entitled to a 30% rebate
For more information please refer to the
Rebate before means testing
you what you're
Rebate after means testing
you what you
For more information
* If you have a continuing entitlement to a higher rebate due to a person aged 65 or over having formerly been covered under your policy (sometimes referred to as a 'Savings Provision Entitlement'), then the calculator may underestimate your new rebate entitlement.
What do I need to do?
If you’re not affected by the changes to the rebate, you don’t need to do anything. If you are affected, you have a couple of options:
- Do nothing - any amount over your rebate entitlement will be taken into account after you lodge your tax return.
- Nominate a rebate % - if you’d like your premium adjusted to the rebate percentage that applies to you, simply login to Online Member Services, call us on 134 190 or visit your nearest Medibank store.
Can I keep my current rebate?
You can keep your current rebate (30%, 35% or 40% depending on your age) for as long as you like.
If, after July 2012, you’re entitled to a lower rebate, any amount you owe will be calculated by the Australian Taxation Office after you lodge your tax return. It’s really up to you how you want it to work.
Is there any change to the way I can claim the rebate?
No, there’s no change. You can claim it as a reduction in your premium, as a direct refund from Medicare or as a refundable tax offset when you lodge your tax return.
How do I calculate my income?
To calculate your income for Australian Government Rebate and Medicare Levy Surcharge purposes, go to ato.gov.au or consult your personal financial or taxation advisor.
What if I nominate the wrong rebate percentage?
If you nominate a rebate percentage which turns out to be more than your entitlement, this will be assessed by the Australian Taxation Office when you lodge your tax return and you can expect to pay back any difference.
Do I have to tell Medibank what I earn?
No, all you have to tell us is the rebate percentage you’d like to nominate. There’s no need to tell us how much you earn.
How easy is it to change my nomination?
It’s very easy to change your nomination. You can do this Online, by calling us on 134 190 or by visiting your nearest Medibank store.
Are there any other changes I need to know about?
Yes, from 1 July 2012 the way the Medicare Levy Surcharge (MLS) is calculated will change. The MLS is a Federal Government tax that applies to higher income earners who don’t have hospital cover for themselves and their dependants.
You can read more about these changes here.
Why is it important to maintain my cover?
Without hospital cover, you might have to pay the Medicare Levy Surcharge. Incurring a tax of 1% - 1.5% for not having hospital cover can, for some, mean that not having hospital cover actually costs more than having it.
Without extras cover, your out-of-pocket costs can be significant. Extras cover helps you manage out-of-pocket expenses for t he more ‘everyday’ services you might use a little, or a lot. Think about those trips to the dentist, your physio or chiro. Without extras cover, your expenses can really add up.
*This is your ‘income for Medicare Levy Surcharge purposes’, which is different to ‘taxable income’. For more information please consult your tax adviser or contact the Australian Taxation Office – ato.gov.au
Medibank cannot advise on financial or tax matters. All material relating to changes to the Australian Government Rebate should not be taken as advice, whether general advice or specific, to a particular person and should not be relied upon in determining your personal tax or financial position. Any information provided to you is of a general nature, does not take account of your circumstances and does not represent legal, financial or tax advice. You should obtain independent advice relevant to your circumstances.