The "tax claim code" on your private health insurance statement (usually A, B, C or D) tells myTax who is claiming the Australian Government Rebate for that policy — and it's easy to pick the wrong one if you're on a couple or family policy. AusTax AI sees this exact mix-up often when a couple lodges separately, each assuming the other is claiming.
What is a tax claim code, and where do I find mine?
Your private health insurer issues an annual statement (most report the data electronically, so it's usually prefilled in myTax) showing your premiums, the rebate you've already received during the year as reduced premiums, and a tax claim code. That code tells the ATO's system who, out of everyone covered by the policy, is claiming the Australian Government Rebate on their own tax return. If you can't see it prefilled, check your statement directly or download it from your fund's member portal — see our guide on finding your private health insurance tax statement if you're not sure where to look.
What do codes A, B, C and D actually mean?
| Code | Typical situation | What it means for your return |
|---|---|---|
| A | You're the only person covered by the policy, or you're claiming your full share with no one else involved | Enter the statement's rebate and premium figures as shown |
| B | Couple or family policy, and you are the only lodging adult claiming this policy's rebate | You claim the full rebate amount for the policy |
| C | Couple or family policy, and your spouse is claiming the rebate for this policy instead of you | You generally don't claim a rebate amount for this policy |
| D | Couple or family policy, and you and your spouse are splitting the claim between you | Each of you enters your agreed share, shown on the statement |
For a couple or family policy, you and your spouse agree between yourselves who uses B, C or D — the combined amount claimed across both returns has to add up to the rebate shown on the statement, no more and no less. In short, the code is really a reconciliation mechanism, not a discount you're choosing to take or leave.
Why does the code affect my Medicare Levy Surcharge too?
Your private health cover — and specifically whether it's adequate hospital cover held for the full year — is also what the Medicare Levy Surcharge section of your return checks. The tax claim code doesn't change whether MLS applies, but the same statement usually confirms your cover dates, which myTax cross-checks against your income to work out if the surcharge applies. AusTax AI's free Medicare Levy Surcharge calculator can sanity-check whether the surcharge should apply based on your cover dates and income. Missing or incomplete health insurance details are one of the more common reasons an MLS calculation looks wrong on first pass.
What if I pick the wrong code?
If the code you select doesn't match what your insurer reported, the ATO's data-matching will generally catch the mismatch once both returns (yours and your spouse's, if relevant) are processed — most often surfacing as a small adjustment to your rebate or a request to confirm the split. It's not treated as a compliance issue if it's a genuine mix-up between partners about who's claiming; it just needs sorting out, sometimes through an amendment. The key point: if you're unsure who should claim, a quick conversation with your spouse before you both lodge avoids the back-and-forth afterwards.
Quick checklist before you lodge
- Confirm the tax claim code shown on your actual statement, not just what's prefilled
- If you're on a couple or family policy, agree with your spouse who's claiming (B), deferring (C), or splitting (D)
- Check the cover dates match what you expect for Medicare Levy Surcharge purposes
- If a rebate amount looks off, cross-check it against your income tier rather than assuming it's an error
Once the health insurance section reconciles, the rest of your FY2025-26 return can go ahead — see our step-by-step myTax guide for what to check next.
Need a professional? Browse every TPB-registered tax agent near you in the AusTax directory, or post a request and matching practices will contact you — free.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
*This is general information only, not personal tax advice. Confirm the exact tax claim code and rebate split for your policy with your health insurer or a Registered Tax Agent.*