Find out the private health insurance rebate income thresholds and rebate percentage rates. Income thresholds The private health insurance rebate is income tested. This means that if your income is higher than the relevant income threshold, you may not be eligible to receive a rebate. Your rebate entitlement depends on your family status on 30 June. Different thresholds apply depending on whether you have a single income or a family income. When you lodge your tax return, we calculate your income for surcharge purposes and determine your rebate entitlement. Your entitlement is also based on the age of the oldest person covered by the policy. The income thresholds used to calculate the Medicare levy surcharge and private health insurance rebate have increased from 1 July 2025. To calculate your private health insurance rebate, see Private health insurance rebate calculator. Single or family income threshold Depending on your situation, your income may be tested against either the:

• Single income thresholds
• Family income thresholds.

Single income thresholds If you are single on the last day of the income year and have no dependents, you are income tested against the single income thresholds. This applies even if you had a spouse for the majority of the year, as long as you were single on the last day (30 June) of the income year. If you separated from your spouse during the financial year and remain single with no dependents on 30 June, your rebate entitlement is calculated only on your own income. Your entitlement to a private health insurance rebate is based on your income for surcharge purposes. If you were single on 30 June, but had dependent children, you are considered a family and will be income tested using the family income thresholds. Family income thresholds If you had a spouse on the last day of the income year (30 June), your income will be tested against the family income thresholds. Your entitlement to a private health insurance rebate is assessed on your and your spouse’s combined income for surcharge purposes. The family income thresholds also apply if:

• you are a single parent with one or more dependents
• you don’t have a spouse on the last day of the income year and you either maintain a dependent child or children or contribute in a substantial way to the maintenance of a dependent child.

If your spouse died in the income year and you were single on 30 June with no dependents, use your and your spouse’s income for surcharge purposes to determine your entitlement under the family income thresholds. If you have 2 or more children, the family income threshold is increased by $1,500 for every Medicare levy surcharge dependent child after the first child. For example, if you have 3 dependent children, your family income threshold increases by $3,000. None of your dependent children’s income is included when calculating family income. Medicare levy surcharge dependent child is different to dependent persons who may be covered by your private health insurance policy. See Dependent persons covered by a policy. Family status on 30 June Your family status on the last day of the income year (30 June) determines whether the single or family income thresholds apply to you. The table below provides a quick guide to when single or family thresholds apply.

Note: The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child. Income thresholds and rebate rates by income year Income thresholds and rebate rates for the private health insurance rebate:

• 2025–26 income thresholds and rebate rates
• 2024–25 income thresholds and rebate rates
• Prior year thresholds and rebate rates

2025–26 income thresholds and rebate rates

The rebate rates from 1 April 2026 will become available in March 2026. 2024–25 income thresholds and rebate rates

Note 1: The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child. Your rebate rate is the percent that you get back from your health insurance premiums in the form of a reduction of the premium or as a refundable tax offset. Your rebate entitlement depends on your family status at the end of the income year (30 June). Different thresholds apply depending on whether you have a single income or a family income. Income tests for the private health insurance rebate When estimating your income for private health insurance rebate purposes, you need to think about how your circumstances may affect whether the single or family threshold applies, including: whether you or your spouse expects an increase in income in the income year – for example, from a promotion, change in employment, or overtime your single or family status – for example, having a partner at the end of the income year

• whether any dependent children will no longer be in your care
• if any dependent children are
• turning 21 years old
• older than 21 and under 25 years old, and no longer in full-time study.

Each adult covered by the policy is income tested:

• to determine their entitlement to a private health insurance rebate, regardless of who pays for the insurance policy
• on their share of the cost of the insurance policy.

Your circumstances may affect the income test for your private health insurance rebate:

• One adult covered by a policy
• Multiple adults covered by a policy
• Dependent persons covered by a policy
• Dependent person-only policies

One adult covered by a policy If you are the only adult covered by a private health insurance policy, your share of the policy for rebate purposes is the total cost of the policy excluding any lifetime health cover loading. You are income tested to determine your private health insurance rebate entitlement regardless of who pays for the policy. Multiple adults covered by a policy If a policy covers more than one adult, the premiums paid are divided into equal shares by the number of adults covered by the policy at the time of the payment, regardless of who paid the premium or whether the adults on the policy are a part of a couple. Each adult’s share of the policy is equal to the total cost of the policy divided by the number of adults covered by the policy at the time of payment. When they lodge their tax return, each adult is income tested to determine their private health insurance rebate entitlement for their share of the cost of the policy. As each adult will be income tested according to their circumstances, there may be different outcomes for each of them. Dependent persons covered by a policy A dependent person is not income tested and their income does not count towards the income test for private health insurance rebate. Therefore, a dependent person on a private health insurance policy is not considered to have a share of the cost of the policy. Your private health insurer can advise you who is covered as a dependent person on your policy. Dependent person-only policies A dependent person covered by a dependent person-only policy is not entitled to a private health insurance rebate. Therefore, a dependent person is not income tested.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.