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Australian Government Rebate (AGR)

The Australian Government Rebate

The Australian Government Rebate (AGR) is an amount that the government puts towards your health cover to make it more affordable. Many Australians receive this rebate as a % reduction on their private health cover premiums, but you can also receive it as a refundable tax offset when you lodge your tax return.

Who can apply for the AGR?

Those earning an income of $140,000 or less as a single, or $280,000 or less as a family (see table below), and who are entitled to Medicare can apply for the AGR. It doesn’t apply to those on overseas visitors cover.

How much rebate are you entitled to?

Your AGR amount depends on your income and how old you are. The table below will show how the AGR is calculated, based on the age and income tier that applies to you.

 

  Base tier Tier 1 Tier 2 Tier 3
Income thresholds
Singles  Up to $90,000 $90,001 - $105,000 $105,001 - $140,000 $140,001 and above
Families Up to $180,000 $180,001 - $210,000 $210,000 - $280,000 $280,001 and above
Private Health Insurance Rebate effective from 01 April 2020 – 31 March 2021*
Less than 65 years 25.059% 16.706% 8.352% 0%
65 - 69 years
29.236% 20.883% 12.529% 0%
70 years+ 33.413% 25.059% 16.706% 0%

Family tiers apply to single parents and couples (including de facto couples). For families with children, the thresholds are increased by $1,500 for each child after the first.

How often does the AGR change?

The government reviews the AGR every year and adjusts it annually on the 1st of April.

How do you register for the AGR?

Registering for the AGR and nominating your income tier is really simple. Just:

  1. Log in to your My Medibank account
  2. Click on the ‘Manage Policy’ tab
  3. Click on ‘Apply for your Government Rebate’
  4. Complete the online registration form

Make sure you have your Medicare card handy. You can also apply for your AGR by visiting your nearest store, or calling us on 132 331.

Login/Register

What if my income tier changes?

You can update your income tier by following the same steps as above and clicking on ‘Update your income tier’.

If you choose the wrong income tier on your AGR application, your actual rate will be worked out by the ATO when you lodge your tax return, and you may need to repay any rebate you received above your entitlement at tax time.

For more information on AGR, visit ato.gov.au/privatehealthinsurance and you can also go to https://www.ato.gov.au/calculators-and-tools/Private-health-insurance-rebate-calculator/ to calculate your rebate.

Ready to get started with health insurance?

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* Calculated in accordance with the Private Health Insurance (Incentives) Rules 2012(No.2).

# Where annual income for Medicare Levy Surcharge purposes is over $90,000 as a single (or $180,000 as a couple/family).

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.

Things you should know

~ Limited to two dental check-ups on all extras annually. Maximum two bitewing x-rays per check-up, where clinically needed. Not available in all areas.

^Waiting periods apply. Up to annual limits, Some lens coatings excluded.

# For Accidents that occur after your cover starts and for which treatment is sought within 7 days. Excludes claims covered by third parties such as WorkCover and our Private Room Promise. Out of pockets may apply.

+ Not available in all areas. Must have eligible hospital cover, all relevant waiting periods must have been served and treating doctor must consider it appropriate. Out of pocket expenses may apply.

* Some claims, like paper based, may take longer to update. If you have Visitors Health Insurance, Working Visa Health Insurance or Overseas Student Health cover, you may not be able to use all the features.

‡ OFFER EXTENDED TO 31 JULY: For new members on new memberships who join and start eligible combined hospital and extras from 1 April – 31 July 2020 and who have not held Medibank health cover in previous 60 days. Must quote promo code 6FREE and set up direct debit when joining. Must maintain direct debit and hold eligible product for 30 continuous days from the policy start date to get next 6 weeks free. 2&6 month waits waived on extras: 2&6 month waiting periods on extras waived. Other waiting periods apply (including 12 months on some dental services). If you’ve reached your limits from a previous fund you may not be able to claim straight away. Excludes Corporate covers, Accident Cover, Ambulance Cover, Overseas Visitors Health Insurance, Overseas Students Health Cover (OSHC), Working Visa Health Insurance, ahm covers and other selected covers. Not available with any other offer.

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