- A taxpayer who has private health insurance?
At a glance:
- On 1 July 2023 (for the 2023-24 income year), the income thresholds for the calculation of the private health insurance rebate will change.
- Contact us if you require clarification or advice.
Some pointers about insurance rebate thresholds.
1. The private health insurance rebate is income tested.
2. This means that if your income is higher than the relevant income threshold, you may not be eligible to receive a rebate for private health insurance that you have paid.
3. Your rebate entitlement depends on your family status on 30 June each year, and different thresholds apply depending on whether you have a single income or a family income.
4. On 1 July 2023 (for the 2023-24 income year), these income thresholds will change.
What are the new thresholds whose family status is deemed “Single”?
The new thresholds taxpayers whose family status is deemed ‘single’ are:
- Base tier, $93,000 or less
- Tier 1, $93,001 – $108,000
- Tier 2, $108,001 – $144,000
- Tier 3, $144,001 or more
What are the new thresholds whose family status is deemed “Family”?
The new thresholds taxpayers whose family status is deemed ‘family’ are:
- Base tier, $186,000 or less
- Tier 1, $186,001 – $216,000
- Tier 2, $216,001 – $288,000
- Tier 3, $288,001 or more
The family income threshold is further increased by $1,500 for each Medicare levy surcharge dependent child after the first child.
How is my rebate computed?
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), and the amount depends on the tier that applies to your income.
This article was published on 30/04/2023 and is current as at that date
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