How have the changes to the Australian Government Rebate affected my premium?

In 2014, the Federal Government introduced changes to how the Australian Government Rebate on private health insurance is calculated to effectively freeze, in real terms, its total budget allocation for the rebate on health insurance premiums.

The change was effective from 1 April 2014 and applies to every health fund.

Each year the Government provides health funds with a rebate adjustment factor which is applied to each customer’s premium (after any applicable discounts) and determined by their income tier and age. The new rebate percentages for 2019 are shown in the below table.

In addition, from 1 July 2013, the Australian Government Rebate is no longer paid on the proportion of the premium that relates to Lifetime Health Cover (LHC) loadings. The rebate will apply to a customer’s base Premium.

The adjusted rebate will automatically apply to any premium payments made on or after 1 April each year. You do not need to do anything.

  Base Tier Tier 1 Tier 2 Tier 3
Under 65 25.059% 16.706% 8.352% 0.000%
65 - 69 29.236% 20.883% 12.529% 0.000%
70+ 33.413% 25.059% 16.706% 0.000%