Federal Government Rebate
Previously, the Government contributed a minimum 30% rebate to all Australians' private health cover.
Due to recent changes in legislation, as of 1 July 2012 the rebate will be means tested and determined by your income level and age.
These changes won't affect everyone and, for many people, there will be no impact on premiums.
We're here to help
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What does this mean for you?
We've created this handy tool to help you calculate your rebate percentage on your health insurance premium.
Simply enter the age of the oldest person on your cover.
Select 'A single income' if your relationship status is single and you're only nominating a single income.
Select 'A family income' if you're married or in a de facto relationship and are nominating a combined income of two adult policy holders, or are a single-parent family.
Find your new rebate percentage
Based on your selections you'd be entitled to a 30% rebate
For more information please refer to the
government website
Your current rebate
70%
Government
pays (rebate)
We'll show
you what you're
currently
entitled to
After means testing
70%
Government
pays (rebate)
We'll show
you what you
could be
entitled to
* 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.
What do I need to do?
You don't need to do anything. These changes aren't due to take effect until 1 July 2012.
We'll be contacting our members over the coming months to provide further details on these changes and what their options are.
Will I be affected?
Single people earning less than $84,000 a year and couples or families on less than $168,000 a year are likely to retain their 30%, 35% or 40% rebate (depending on their age).
What does means testing mean?
Means testing is a process where a person's eligibility for a particular benefit is determined by their level of income.
In the case of the Federal Government Rebate, it means that if you earn over a certain amount of money each year then the amount of rebate you receive may be reduced (or removed completely).
Are there any other changes I need to know about?
Yes. As part of this legislation, from 1 July 2012, the Medicare Levy Surcharge will also vary according to your income level.
The Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and don't have an appropriate level of private patient hospital cover.
Visit the Department of Health & Ageing for a breakdown of the changes.
Why is it important to maintain my cover?
By keeping your resident hospital cover you could avoid the Medicare Levy Surcharge. The changes mean that from 1 July 2012, depending on your income, you may pay up to an extra 1.5% of your income as Medicare Levy Surcharge if you don't have private patient hospital cover.
How to claim the rebate
There's no change to how you claim your rebate. You can claim three ways:
- Claim the rebate as an upfront reduction to your premium
- Through Medicare - contact us to request your Medibank receipt and then take it to any Medicare office to claim your rebate.
- Your Tax Return - at the end of each financial year, you'll receive a Private Health Insurance Statement from us. Refer to this statement to find out the amount you're eligible to claim on your tax return.