The Australian Government Rebate (AGR) on private health insurance is an amount the government may contribute towards your premium to make it more affordable.
If you’re eligible, you can choose to get the rebate by paying reduced premiums. Alternatively, your rebate may be claimed through your annual tax return with ATO. If you choose to claim any rebate through your tax return or if your income tier changes throughout the financial year, you may receive a tax offset. If you claim too much of the rebate or your income tier changes, you may see a tax liability in your tax return under the heading ‘Excess private health reduction or refund (rebate reduced)’.
Am I eligible for the rebate?
All the people listed on the policy must be eligible for Medicare for you to receive the rebate.
How much is the rebate?
The rebate amount you are entitled to is based on the age of the oldest person covered by the policy and your income tier.
2023 - 2024 AGR & MLS Income Thresholds (from 1 July 2023 onwards)
|Base tier||Tier 1||Tier 2||Tier 3|
|Singles||$93,000 or less||$93,001 - $108,000||$108,001 - $144,000||$144,001
|$186,001 - $216,000||$216,001 - $288,000||$288,001
|2023 - 2024 rebate entitlement - based on age and income|
|Age under 65||24.608%||16.405%||8.202%||0%|
|Age 65 - 69||28.710%||20.507%||12.303%||0%|
Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each MLS dependant child after the first. 'Dependant' has a specific meaning for Medicare Levy Surcharge purposes which is different to ahm's definition of a dependant. Find out more at ato.gov.au
How can I update my income tier?
If your income threshold has changed and you will qualify for a different rebate, you can log in and update it. You can change your income tier at any time throughout the year, and your new rebate percentage will then apply to any future premiums paid.
If you choose the wrong income tier on your AGR application, your actual rate will be worked out by the ATO when you lodge your tax return, and you may get a tax offset, or see a tax liability in your tax return under the heading ‘Excess private health reduction or refund (rebate reduced)’.
For more information about the Australian Government Rebate (sometimes known as the private health insurance rebate) or the Medicare Levy Surcharge visit privatehealth.gov.au or ato.gov.au.
For independent private health insurance advice, visit privatehealth.gov.au.