The private health insurance rebate is the amount the Australian Government contributes towards the cost of your private health insurance premiums.
The rebate is income tested and applies to Hospital, Extras or combined products. If you have a higher income, your rebate entitlement may be reduced or you may not be entitled to receive any rebate at all.
The rebate contribution from the Australian Government is calculated using a formula that considers a number of factors including the Consumer Price Index and the industry weighted average premium increase.
The rebate is based on the following income thresholds. These income thresholds will remain the same until June 30, 2021. The rebate percentages come into effect on April 1, 2020, and will remain the same until March 31, 2021:
You can use the table above to work out your income tier, or if you require more information, you can visit the Australian Taxation Office Website or call 132 861.
HOW DO I CLAIM THE REBATE?
There are two ways you can claim for the rebate if you are eligible.
Firstly, you can choose to receive the rebate as a premium reduction through your private health insurer. If you choose to do this, you will be asked to nominate the income tier you expect to fall into. You can do this by contacting the Astute Simplicity Health Customer Care Centre on 1300 090 960.
Alternatively, you can choose to receive the rebate as a tax offset when you lodge your annual tax return.
WHAT HAPPENS IF I NOMINATE THE WRONG TIER?
Don’t stress if you nominate the incorrect income tier.
If you nominate a tier that results in a lower rebate that your income entitles you to, you will receive a tax offset through your tax return at the end of the financial year.
If you nominate a tier that results in higher rebate that your income entitles you to, you may incur a tax debt through your tax return at the end of the financial year. But don’t worry, there are no additional penalties for nominating the wrong tier.
DID YOU KNOW?
Did you know that your rebate information is auto-filled as part of your income tax return?
Private health insurers are no longer required by law to send you a private health insurance statement at the end of the financial year to help you complete your tax return as this information is automatically sent to the Australian Taxation Office.
You can request Astute Simplicity Health send you your private health insurance statement by contacting our Customer Care Centre on 1300 090 960.