Australian Government Rebate

If you are eligible, the Australian Government Rebate (AGR) can help you meet the cost of private health insurance by reducing your premiums.

Depending on your income and the age of the oldest person on your policy, the government may pay 30% of your premium for you.

What % rebate will you get?

In 2012, the Government introduced changes to the way the rebate is calculated. This means your rebate tier may change depending on your age and income.

Single people with annual income* over $88,000 or couples and families with a combined income* over $176,000 are likely to be affected by this change.

Use the calculator below to check your rebate tier. Then, if you’re a Medibank member, you'll need to login to Online Member Services to ensure the tier you have nominated suits your circumstances, or nominate a tier if you haven’t already done so.

Visit the ATO website for more information

*This is your income for Medicare Levy Surcharge purposes, not your taxable income. Thresholds quoted are for the 2013-2014 financial year.

We're here to help

Calculate your rebate

Use this handy tool to calculate the rebate tier you want to apply for on your health insurance premium.

Note: Information entered here is not stored by Medibank or shared with anyone.

Age of oldest person covered
Income declared as
Income range
Your indicative rebate tier**

**Rebate varies according to your particular circumstances and is an estimate only.

The family income threshold is increased by $1500 for each dependant child after the first. Single-parent families are subject to the family income tiers.

To qualify for a single-parent family rebate, at least one child must be a 'dependent child' for taxation purposes.

If you have a continuing entitlement to a higher rebate due to a person aged 65 or over having formerly been covered under your policy (sometimes referred to as a 'Savings Provision Entitlement'), then the calculator may underestimate your new rebate entitlement.

Not a Medibank member yet?

You can nominate this rebate tier when you join Medibank.

Already a member?

How can I change my nominated rebate tier?

Changing your rebate tier is easy – do it at Online Member Services, by calling us on 134 190 or by visiting your nearest Medibank store.

What if I nominate the wrong rebate tier?

If you receive a higher rebate than you're actually entitled to (based on your age and income), you may have to pay back any difference to the ATO at tax time.

If you receive a lower rebate than you're actually entitled to, you may receive a 'tax credit' for the difference at tax time.

Do I have to tell Medibank what I earn?

No, all you have to tell us is the rebate tier that you wish to nominate. There's no need to tell us how much you earn.

What happens if you pay the Lifetime Health Cover loading

In July 2013, the Government changed the way the AGR is applied to your health cover premium if you pay a Lifetime Health Cover (LHC) loading.

If you receive the AGR as an upfront reduction in your premium, because you don't get the rebate on your LHC loading any more, your premium will probably increase.

Here's an example of how it works:

Before 1 July 2013

a. Premiumb. LHCc. AGRd. Member pays
$1500$30$459$1071
30% of a + ba + b – c = d

After 1 July 2013

a. Premiumb. LHCc. AGRd. Member pays
$1500$30$450$1080
30% of aa – c + b = d

Example based on a customer who has applied for 30% AGR and has a 2% LHC loading

How can I claim the rebate?

You can claim your rebate now as a reduction in your Medibank premium. To do this, please login to Online Member Services and update your rebate tier, call us on 134 190 or visit your nearest Medibank store.

If you don't claim it this way, it will be sorted out at tax time by the ATO.

From 1 July 2013, you can no longer claim your rebate by taking your Medibank receipt to a Medicare office.

Why is it important to maintain my cover?

If you don't maintain some level of hospital cover for yourself and any dependants, then you might have to pay the Medicare Levy Surcharge (MLS).

The MLS is income tested. So, depending on your income, you could incur an extra tax of 1-1.5%. For some people, this means that not having hospital cover can actually cost more than having it.

You should not regard material relating to changes to the Australian Government Rebate as legal, financial or tax advice, and it should not be relied on when determining your personal tax or financial position. Any information provided is of a general nature and does not take account of your circumstances. You should obtain independent financial advice relevant to your circumstances or visit ato.gov.au for more information.