Private Health · Rebate by Income

Private Health Insurance Rebate at $120k Income

At $120,000 income for 2026-27, a single policyholder sits in the Tier 1 — a 16.08% rebate (under 65).

Rebate by age band at $120k (Tier 1)

Age of oldest person on the policy	Rebate rate
Under 65	16.079%
65–69	20.098%
70+	24.118%

Worked examples (under 65, Tier 1)

Illustrative planning figures — actual insurer pricing varies by policy and state.

Annual hospital premium	Rebate (16.079%)	Premium after rebate
$1,800	$289	$1,511
$3,000	$482	$2,518
$4,800	$772	$4,028

The rebate applies to the base hospital premium only — it does not reduce any Lifetime Health Cover loading.

Medicare Levy Surcharge at $120k

As a single with no hospital cover, $120,000 falls in MLS tier1 — a 1.00% surcharge on top of the standard 2% Medicare levy. Holding hospital cover avoids this entirely.

Single vs family threshold at the same income

As a single income

Tier: Tier 1

MLS if uninsured: 1.00%

As a combined family income

Tier: Base tier

MLS if uninsured: None

Family thresholds increase by $1,500 for each dependent child after the first.

Next step: run the full numbers

Rebate calculator

Preloaded with $120,000 income — add your premium and household details for the exact rebate.

MLS calculator

Preloaded with $120,000 income and no cover — see the exact surcharge.

LHC loading by age

If you're joining hospital cover later in life, check the loading first.

Compare adjacent incomes

← $110k income All income levels + hub $130k income →

Frequently asked questions

What private health insurance rebate do I get at $120k income?

At $120,000 as a single, you fall in the Tier 1 for 2026-27, giving a rebate of 16.079% (under 65). On a $1,800 hospital premium, that is $289 back.

Does $120k trigger the Medicare Levy Surcharge if I don't have cover?

Yes. As a single with no hospital cover, $120,000 sits in MLS tier1 at 1.00% of income — an extra surcharge on top of the standard 2% Medicare levy.

What if $120k is a family income, not a single income?

Family thresholds are roughly double the single ones. At a combined family income of $120,000, the rebate tier is Base tier, and no MLS applies without cover.

Does the rebate rate change by age?

Yes. Within the same income tier, older policyholders get a higher rebate — the government tops up the rate for the 65-69 and 70+ age bands (based on the oldest person covered by the policy) to help offset typically higher premiums.

Does Lifetime Health Cover loading reduce the rebate?

The rebate applies to your base hospital premium only — LHC loading is calculated separately and is not eligible for the rebate.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This page shows the private health insurance rebate tier and Medicare Levy Surcharge interaction at a chosen income. It is a planning guide, not personal tax advice.