Private Health Insurance Rebate Percentages for 2016/17

The Private Health Insurance Rebate Percentages that apply from 1 April 2017 have been released.

The table below sets out the rebate percentages for the 2016/17 income year.

	Base Tier	Tier 1	Tier 2	Tier 3
Singles	$90,000 or less¹	$90,001–$105,000¹	$105,001–$140,000¹	$140,001 or more¹
Families²	$180,000 or less¹	$180,001–$210,000¹	$210,001–$280,000¹	$280,001 or more¹
Under 65	26.791% / 25.934%³	17.861% / 17.289%³	8.930% / 8.644%³	0%
65–9	31.256% / 30.256%³	22.326% / 21.612%³	13.395% / 12.966%³	0%
70+	35.722% / 34.579%³	26.791% / 25.934%³	17.861% / 17.289%³	0%

Notes:

1. From 1 July 2015, the income thresholds used to calculate the Private health insurance rebate and the Medicare levy surcharge will not be adjusted for three years, ie the thresholds will remain at the 2014/15 levels for 2015/16, 2016/17 and 2017/18.

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

3. The first percentage specifies the rebate percentage that applied from 1 April 2016 to 31 March 2017. The second percentage specifies the rebate percentage that applies from 1 April 2017 to 30 June 2017.

The private health insurance rebate has been indexed from 1 April 2014. From that date, the rebate contribution from the government is annually adjusted by a universal Rebate Adjustment Factor (RAF).

The RAF represents the difference between the Consumer Price Index (CPI) and the industry weighted average increase in premiums. The RAF is enacted by the Private Health Insurance Legislation Amendment Act 2014 and is set out in the Private Health Insurance (Incentives) Rules.

A person’s rebate entitlement continues to be based on their age and income for Medicare levy surcharge purposes.

Source: The Department of Health website, 6 April 2017.