Private Health Insurance Rebate Calculator Australia
The right way to compare private health insurance against the MLS is to use the net premium, not the headline premium. The private health insurance rebate can materially lower the out-of-pocket cost of a policy, while LHC loading can push it back up.
Use your insurer's annual rebate-eligible premium before rebate, excluding any Lifetime Health Cover loading.
Uses your status on 30 June. Family includes couples and single parents; couples combine income.
This is not always taxable income. Include reportable fringe benefits, reportable super contributions and net investment losses under the ATO income test.
Leave blank only if there is no LHC loading. The rebate does not apply to loading, which is capped at 70%.
Enter the premium and income, then choose your 30 June family status and policy age band — enter 0 children where applicable.
Next best steps
How to use this page
- Enter your income for surcharge purposes and family status so the calculator can determine the tier.
- Find the age band for the oldest person on the policy.
- Apply the rebate percentage to the rebate-eligible premium only.
- Compare the net premium against your potential MLS.
Recent ATO-published rebate rates
| Oldest person covered | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Under 65 | 24.118% | 16.079% | 8.038% | 0.000% |
| 65 to 69 | 28.139% | 20.098% | 12.058% | 0.000% |
| 70 and over | 32.158% | 24.118% | 16.079% | 0.000% |
Rebate percentages are adjusted by government each 1 April. Use the ATO official calculator for the exact current-year rate if your decision is close.
Worked example
Suppose your rebate-eligible annual premium is 2,400.00 and the oldest adult on the policy is under 65.
Base tier
Approx. rebate: 579.00
Approx. net premium: 1,821.00
Tier 1
Approx. rebate: 386.00
Approx. net premium: 2,014.00
Tier 2
Approx. rebate: 193.00
Approx. net premium: 2,207.00
What the rebate does not cover
- LHC loading is not rebate-eligible.
- The rebate does not change whether the MLS applies.
- The rebate percentage can change if your final income tier changes during the year.
Return to the decision hub
Use MLS, rebate and family rules together before comparing policy quotes.
Check the MLS side
Estimate the surcharge you are trying to avoid before comparing it to net premium.
Check LHC loading
See whether loading is pushing your premium up enough to change the decision.
Frequently asked questions
What does the private health insurance rebate do?
Does the rebate remove the Medicare Levy Surcharge?
Is LHC loading rebate-eligible?
Why can the rebate still create a tax bill later?
Tax Accuracy & Sources
This page explains how the private health insurance rebate changes net premium cost. The official ATO rebate calculator remains the source of truth for exact current-year rebate percentages.