To encourage Australians to take out private health insurance and to make it more affordable, the government may offer a rebate on health cover premiums known as the Australian Government Rebate (AGR).
The percentage of AGR that you’re eligible to receive depends on two things – how much you earn and your age.
The AGR is revised every year on April 1. And since 2014, it has been decreasing.
For more information, visit ato.gov.au/privatehealthinsurance
|Tier 0||Tier 1||Tier 2||Tier 3|
|Income thresholds effective as of 1 July 2015|
|Singles||Up to $90,000||$90,001 - $105,000||$105,001 - $140,000||$140,001 and above|
|Couples/families||Up to $180,000||$180,001 - $210,000||$210,001 - $280,000||$280,001 and above|
|Rebate entitlement - based on age and income as of 1 April 2017*|
|Less than 65 years||25.934%||17.289%||8.644%||0%|
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
*Calculated in accordance with the Private Health Insurance (Incentives) Rules 2012(No.2). AGR does not apply to overseas visitors cover.
Registering for the AGR and nominating your rebate tier
By registering for the AGR and nominating the rebate tier that applies to your circumstances, you can help ensure the correct rebate amount is applied to your premium.
To register for the AGR and to nominate your rebate tier, you can:
If you don't nominate your correct income tier, your actual rebate entitlement will be worked out by the ATO when you lodge your income tax return – this may mean having to repay any rebate you received above your entitlement at tax time.