Private health insurance government rebate
In an attempt to make private health insurance affordable to more Australians, in 1999 the Federal Government introduced its 30% Rebate scheme. Anyone paying for private health insurance is entitled to claim 30 cents back for every dollar spent on private health insurance premiums.
In April 2005, new rebate amounts were introduced for private health insurance fund members aged over 65. People aged between 65 and 69 are entitled to claim a 35% rebate and people 70 or over qualify for a rebate of 40%.
Who can claim the 30% Rebate?
The 30% Rebate is not means tested, so anyone with hospital and/or extras health insurance with a registered fund can claim. If you are unsure as to whether your fund is registered, just check with them, however most existing funds are registered.
You are also entitled to claim the 30% Rebate if you pay premiums on a health insurance policy that does not cover you personally. For example, if you are the policy holder on health insurance for a dependant child. Further more, the rebate can also be claimed if your employer has paid the premium on your behalf.
However, the health insurance policy must cover a person or persons entitled to Medicare benefits.
Who can’t claim the Rebate?
As well as people not eligible for Medicare benefits, those with overseas visitor health cover are also not entitled to claim the 30% Rebate.
How do I claim the 30% Rebate?
Claiming the rebate couldn’t be easier, with three simple methods for customers to choose from.
- Premium reduction from your fund.
Whether you pay your premium in a lump sum or by the month, you can register to receive the rebate as a reduced premium through the premium reduction scheme. Forms to register for the scheme are available through your private health insurance fund.
- Medicare office payment.
The rebate can be received as a one-off payment each year by completing a form at any Medicare office once your premium has been paid. If you pay in instalments, claims can be made each time a payment is made if preferred. Small amounts can be paid by Medicare as cash. For larger amounts, a cheque will be mailed to the policy holder.
- Tax return rebate.
The 30% rebate can be claimed as part of your annual tax return at the end of the financial year. It is also available as a refundable tax offset.
Do I have to be a taxpayer to claim?
No. Anyone with private health insurance with a registered fund is entitled to claim the rebate regardless of whether they pay tax or not. To make your claim you will need to register to receive reduced premiums from your private health insurance fund or apply to directly to Medicare for your rebate payment(s).
For more information on the Federal Government’s 30% rebate contact the Department of Health and Aging, your private health insurance fund or Medicare.