Australian Government Rebate

To make private health insurance more affordable the Federal Government provides many Australians with a rebate.

Each year the Government provides health funds with a rebate adjustment factor which will be applied to each customer's premium (after any applicable discounts) and determined by their income tier and age. The adjusted rebate will automatically apply to any premium payments made on or after 1 April each year including customers who may be in arrears.

Please note that if you have a Lifetime Health Cover (LHC) loading, the Rebate is not claimable on the LHC loading component of your premium.

Income and age tiers for the Australian Government Rebate from 1 April 2016

Rebate for singles based on your age and taxable income for the 2016/2017 financial year:

Australian Government Rebate
Income for the 2016/2017 financial year Age < 65 Age 65-69 Age 70+
Tier 0 $90,000 or less 26.791% 31.256% 35.722%
Tier 1 $90,001-$105,000 17.861% 22.326% 26.791%
Tier 2 $105,001-$140,000 8.930% 13.395% 17.861%
Tier 3 $140,001 or more 0% 0% 0%

Rebate for couples, families and single parent families (based on the age of the oldest person on the policy and your combined annual taxable income):

Australian Government Rebate
Combined income for the 2016/2017 financial year Age < 65 Age 65-69 Age 70+
Tier 0 $180,000 or less 26.791% 31.256% 35.722%
Tier 1 $180,001-$210,000 17.861% 22.326% 26.791%
Tier 2 $210,001-$280,000 8.930% 13.395% 17.861%
Tier 3 $280,001 or more 0% 0% 0%

How do I claim the Australian Government Rebate?

Most eligible customers claim the rebate upfront as it reduces the amount they pay nib. Let us know which income bracket you fall into and we can apply the corresponding rebate to your policy.

Other options for claiming the rebate:

  • You can choose to receive a rebate from nib which is higher than you are entitled to from the Government. If you do this you may need to pay back the difference over and above your entitlement in the form of a tax bill when you lodge your tax return.
  • You can choose to receive a rebate from nib which is lower than you are entitled to from the Government. If you do this you should see the difference returned to you when you lodge your tax return.
  • Alternatively, you can choose not to receive any rebate upfront from nib and claim your entire entitlement from the Government (if eligible) when you lodge your tax return.

If you haven't already, you can nominate your level of rebate by calling nib on 13 16 42 or logging into Online Services and selecting 'Government Rebate'.

What if I pick the wrong tier?

If you choose to receive the Australian Government Rebate as a reduction on your premium, you'll need to select an income tier so the correct rebate level can be applied. As this income tier is an estimation for your earnings in the full financial year, you may find you earn more or less than this amount by the time June 30 rolls around. There are no penalties for choosing the wrong tier but you may need to factor in a financial adjustment at tax time.

If you earn more than the tier you selected, you probably won't be eligible for quite as much of a rebate which means you may need to pay back the difference in your tax return. If you earn less than this income tier and are eligible to receive a higher rebate, you may receive this when you finalise your tax at the end of the financial year.

You may also be impacted by the Medicare Levy Surcharge

If you earn more than $90,000 annual taxable income for singles and $180,000 combined for couples, families and single-parent families you may also be impacted by the Medicare Levy Surcharge.

More information

These Rebate percentages are set annually on 1 April by the Federal Government. To find out how the Rebate percentages are calculated, visit the Australian Tax Office. They also have specific rules about defining your income for Australian Government Rebate and Medicare Levy Surcharge purposes. Get in touch with your accountant, financial planner or visit the Australian Tax Office, for more information.

Overseas visitors

The Australian Government Rebate is also available to some overseas visitors living and working in Australia, but only applies to nib's domestic health covers. Call nib on 1800 22 11 33 (+61 2 49 14 11 31) for more information or visit the IMAN Australian Health Plans Website.