Private Health Insurance Rebate Calculator Australia
The right way to compare private health insurance against the MLS is to use the net premium, not the headline premium. The private health insurance rebate can materially lower the out-of-pocket cost of a policy, while LHC loading can push it back up.
Quick answer: your rebate percentage depends on your age band and your income for surcharge purposes. Tier 3 generally means no rebate. The rebate can apply to hospital, extras, or combined cover, but it does not apply to the LHC loading component.
Enter the annual premium before rebate. If part of the premium is not rebate-eligible, enter only the rebate-eligible portion here.
Optional. The rebate does not apply to this loading component.
Compare the final loaded premium against your annual MLS, not against the standard 2% Medicare levy.
How to use this page
- Find your likely income tier for surcharge purposes.
- Find the age band for the oldest person on the policy.
- Apply the rebate percentage to the rebate-eligible premium only.
- Compare the net premium against your potential MLS.
Recent ATO-published rebate rates
| Oldest person covered | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.288% | 16.192% | 8.095% | 0.000% |
| 65 to 69 | 28.337% | 20.240% | 12.143% | 0.000% |
| 70 and over | 32.385% | 24.288% | 16.192% | 0.000% |
Rebate percentages are adjusted by government each 1 April. Use the ATO official calculator for the exact current-year rate if your decision is close.
Worked example
Suppose your rebate-eligible annual premium is 2,400.00 and the oldest adult on the policy is under 65.
Base tier
Approx. rebate: 583.00
Approx. net premium: 1,817.00
Tier 1
Approx. rebate: 389.00
Approx. net premium: 2,011.00
Tier 2
Approx. rebate: 194.00
Approx. net premium: 2,206.00
What the rebate does not cover
- LHC loading is not rebate-eligible.
- The rebate does not change whether the MLS applies.
- The rebate percentage can change if your final income tier changes during the year.
Return to the decision hub
Use MLS, rebate and family rules together before comparing policy quotes.
Check the MLS side
Estimate the surcharge you are trying to avoid before comparing it to net premium.
Check LHC loading
See whether loading is pushing your premium up enough to change the decision.
Frequently asked questions
What does the private health insurance rebate do?
It reduces the cost of eligible private health insurance premiums either as a reduced premium through your insurer or as a refundable tax offset when you lodge your tax return.
Does the rebate remove the Medicare Levy Surcharge?
No. The rebate and the MLS are separate. Appropriate hospital cover can remove the MLS, while the rebate can reduce the cost of the policy itself.
Is LHC loading rebate-eligible?
No. The Australian Government rebate does not apply to the Lifetime Health Cover loading component of a premium.
Why can the rebate still create a tax bill later?
If you claim too much rebate through premium reductions and your final income for surcharge purposes lands in a higher tier, the ATO can claw back the excess when you lodge your return.
Tax Accuracy & Sources
This page explains how the private health insurance rebate changes net premium cost. The official ATO rebate calculator remains the source of truth for exact current-year rebate percentages.