What is the Australian Government Rebate (AGR)?
If you have a health insurance policy and earn an income less than a certain amount, you may be eligible for the Australian Government Rebate (AGR) – a government contribution to help with the cost of your private health insurance.1
The Australian Government provides this rebate to make private healthcare more affordable for some Australians. It’s one of several incentives offered by the government to encourage more Australians take out health insurance and keep it1 which can ease pressure on Medicare, our public health system.
Who is eligible for the Australian Government Rebate?
To be eligible to receive the AGR:
- you need to hold a complying health insurance policy for Hospital, Extras or combined Hospital & Extras Cover
- your taxable income for 2025-26 needs to be $158,000 or less as a single; or, $316,000 or less as a family
- you need to be entitled to Medicare – meaning people on Overseas Health Cover aren’t eligible
- be a private health insurance incentive beneficiary.
Visit the Australian Taxation Office for more information around whether you’re eligible for the private health insurance rebate.
How is the Australian Government Rebate calculated?
The table below shows the rebate amount you can expect, based on your age and 2025-2026 income thresholds:
| Base tier | Tier 1 | Tier 2 | Tier 3 | |
| Your annual taxable income determines your tier | ||||
| Singles | Up to $101,000 | $101,001 - $118,000 | $118,001 - $158,000 | $158,001 and above |
| Families | Up to $202,000 | $202,001 - $236,000 | $236,001 - $316,000 | $316,001 and above |
| Once you know your tier, use your age to find the % you will be rebated (effective from 01 April 2025 – 31 March 2026) |
||||
| Less than 65 years | 24.288% | 16.192% | 8.095% | 0% |
| 65 - 69 years |
28.337% | 20.240% | 12.143% | 0% |
| 70 years+ | 32.385% | 24.288% | 16.192% | 0% |
The rebate amount is determined by the Government each year, not health insurance funds, and is dependent on your age and income levels. Put simply: as your income increases, your rebate % decreases. And as your age increases, your rebate % increases.
The AGR also considers whether you’re a single or a family. For families, your income tier is calculated using your combined income. Family tiers apply to single parents and couples (including de facto couples). For families with children, the threshold increases by $1,500 for each dependent child after the first.#
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Things you should know
1 PrivateHealth.gov.au; Government Surcharges & Incentives; retrieved October 2024.
2 Australian Taxation Office; Claiming the private health insurance rebate; retrieved March 2025.
# 'Income’ and 'dependants' for Medicare Levy Surcharge purposes only. Learn more.
Medibank Private Limited cannot advise on financial or tax matters. Any information provided to you is general in nature and does not take account of your individual circumstances. You should obtain your own independent financial advice.