Australian Government Rebate
To make private health insurance more affordable, the Federal Government provides many Australians with a rebate, known as the Australian Government Rebate on Private Health Insurance (AGR).
About the Australian Government Rebate
Each year the Government provides health funds with a rebate adjustment factor which will be applied to each member’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 members who aren't up to date with their payments. The rebate can be used to reduce your premiums, or claimed when you lodge your tax return with the Australian Taxation Office.
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.
Who is eligible for a rebate?
If you earn an income of $158,000 or less as a single, or $316,000 or less as a family (see table below) you are eligible for the rebate. All the people listed on the health insurance policy must be eligible to claim Medicare for you to receive the rebate.
How much is the rebate?
If you are eligible for the rebate, use the below table to find out which rebate you fall into and what percentage of your premium the Australian Government will cover.
Income and age tiers for the Australian Government Rebate
Rebate for singles based on your age and taxable income for the 2026/2027 financial year:
Income for the 2026/2027 financial year | Age < 65 | Age 65-69 | Age 70+ | |
|---|---|---|---|---|
Base Tier | $101,000 or less | 24.118% | 28.139% | 32.158% |
Tier 1 | $101,001 - $118,000 | 16.079% | 20.098% | 24.188% |
Tier 2 | $118,001 - $158,000 | 8.038% | 12.058% | 16.079% |
Tier 3 | $158,001 or more | 0% | 0% | 0% |
Source: Australian Tax Office. These thresholds will apply to individuals from 1 April 2026. There are specific rules for calculating income for Australian Government Rebate purposes. For more information visit the Australian Tax Office.
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):
Combined income for the 2026/2027 financial year | Age < 65 | Age 65-69 | Age 70+ | |
|---|---|---|---|---|
Base Tier | $202,000 or less | 24.188% | 28.139% | 32.158% |
Tier 1 | $202,001 - $236,000 | 16.079% | 20.098% | 24.188% |
Tier 2 | $236,001 - $316,000 | 8.038% | 12.058% | 16.079% |
Tier 3 | $316,001 or more | 0% | 0% | 0% |
Source: Australian Tax Office. These thresholds apply to couples, families and single parent families from 1 April 2026. Thresholds increase by $1,500 for each dependant child after the first. There are specific rules for calculating income for Australian Government Rebate purposes. For more information visit the Australian Taxation Office.
How do I claim the Australian Government Rebate?
Most eligible members claim the rebate upfront as it reduces the amount they pay nib. By letting us know which income bracket you fall into we can apply the corresponding rebate to your policy.
You can nominate your level of rebate by logging in to your member account and selecting ‘Australian Government Rebate’ or calling nib on 13 16 42.
Other options for claiming the rebate:
Receive a rebate from nib which is higher than what you're 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
Receive a rebate from nib which is lower than what you're entitled to from the Government. If you do this you should see the difference returned to you when you lodge your tax return
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
Frequently asked questions
More information
The rebate percentages are set annually on 1 April by the Federal Government.
To find out how they are calculated and the 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 Taxation Office website for more information.