Private Health Insurance Rebate Calculator (FY2025-26)
Find out exactly how much the Australian Government will refund on your private hospital cover. Pick your income tier and age band and our calculator returns your rebate percentage, dollar amount, and premium after rebate using current FY2025-26 thresholds.
About this calculator
The Private Health Insurance (PHI) Rebate is a means-tested government contribution toward your hospital and extras premiums. It works on four income tiers (Base, Tier 1, Tier 2, Tier 3) that mirror the Medicare Levy Surcharge thresholds, and three age bands (under 65, 65-69, and 70+) that increase the rebate as you age. For singles in Tier 0 (income up to $101,000) the under-65 rebate is around 24.6%, while a 70+ retiree at the same income tier receives roughly 32.8%.
Income for surcharge purposes is wider than just taxable income. It adds back reportable fringe benefits, reportable employer super contributions (salary sacrifice), net investment losses on rental and financial assets, and exempt foreign employment income. A high earner whose taxable income looks moderate after deductions can still land in Tier 2 or Tier 3 once these add-backs apply, wiping out the rebate. Family thresholds are exactly double the single thresholds (Tier 0 ends at $202,000), plus $1,500 for each dependent child after the first, recognising the higher cost of living for larger households.
You can claim the rebate two ways. The simplest is to nominate your tier with your insurer, who then charges you a lower premium each month. The alternative is to pay full premiums during the year and claim the rebate as a refundable tax offset on your return. If you nominate the wrong tier and your income lands you in a lower-rebate band, you owe the difference at tax time, so be conservative if your income is volatile or close to a threshold.
How to use
- 1Enter your income for surcharge purposes (taxable income plus reportable fringe benefits, super, and other adjustments).
- 2Select your age band: under 65, 65-69, or 70+.
- 3Choose single or family, and enter dependents if applicable.
- 4Enter your annual hospital cover premium before any rebate.
- 5Review your rebate percentage, the dollar amount, and your net premium after the rebate is applied.
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Frequently asked questions
How is the private health insurance rebate calculated?
The rebate is a percentage of your eligible hospital and extras premium, based on your income tier and age band. For FY2025-26, a single under 65 with income up to $101,000 receives roughly 24.608%, dropping to about 16.405% in Tier 1 ($101,001-$118,000), 8.202% in Tier 2 ($118,001-$158,000), and zero in Tier 3 (over $158,000). Each age band lifts the rebate by roughly 4 percentage points: 65-69 sits about 4 points above under-65, and 70+ sits about 8 points above. Multiply the percentage by your annual premium to get your dollar saving.
What counts as 'income for surcharge purposes'?
Income for surcharge purposes is broader than your taxable income. It is your taxable income plus reportable fringe benefits, reportable employer super contributions (salary sacrifice), net investment losses (rental and financial), and any exempt foreign employment income. The ATO uses the same definition for the Medicare Levy Surcharge, so anything that pushes you into a higher MLS bracket also pushes you into a lower-rebate tier. Investment property landlords with negative gearing and high salary-sacrificers are common cases of taxable income looking modest while surcharge income lands in Tier 2 or 3.
Can I claim the rebate via my insurer or on my tax return?
Both options exist. Most people nominate their expected income tier with their insurer, who then applies the rebate as a monthly discount, so the premium charged is already net of the rebate. The alternative is to pay full premiums and claim the rebate as a refundable tax offset on your return. End result is identical but the upfront-discount route helps cash flow. The risk: if you nominate the wrong tier and actual income lands in a lower-rebate band, the ATO recovers the difference at tax time. If your income is unstable, nominate conservatively.
Do family thresholds work differently?
Yes. Family thresholds are exactly double the single thresholds: Tier 0 ends at $202,000 family income, Tier 1 ends at $236,000, Tier 2 ends at $316,000, and Tier 3 starts above $316,000. Family income includes both partners' surcharge income combined. There is also a $1,500 uplift to each threshold for every dependent child after the first, recognising that families with multiple kids face higher cost of living. Same-sex couples and de facto relationships are treated as families. Single parents qualify for family thresholds if they have a dependent child under 21 (or under 25 if a full-time student).
What is Lifetime Health Cover Loading?
LHC Loading is a separate surcharge designed to incentivise younger Australians to take out hospital cover early. If you take out hospital cover after age 30, you pay 2% extra on your premium for every year you waited, up to a maximum of 70% loading. The loading applies on top of the rebate calculation: rebate is applied first, then loading is added. After 10 continuous years of holding hospital cover, the loading is removed permanently. This calculator focuses on the rebate; if you have an LHC loading, factor that as an additional cost on top of your post-rebate premium.
Authoritative sources
All rates and thresholds used in this calculator are sourced from the Australian Taxation Office (ATO).
Want a full refund estimate?
Our main refund calculator combines all these rules — enter your salary and deductions for a full annual refund estimate.
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