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Private health insurance offset

Check if you can claim a tax offset to cover the cost of your private health insurance premium.

Last updated 24 June 2024

Eligibility for the private health insurance offset

You must have private health insurance (PHI) to claim the private health insurance offset. The offset is sometimes called the private health insurance rebate.

The offset is an amount the government contributes towards your private health insurance. You may take it as a reduced premium or a refundable offset when you lodge your tax return.

Your entitlement depends on:

The amount of private health insurance offset you can receive is reduced, to nil in some cases, if your income for Medicare levy income surcharge purposes is more than a certain amount.

For more information on the income thresholds, see Income tests for the private health insurance offset.

Calculating your PHI offset

We calculate the amount of private health insurance offset when you lodge your tax return. We will test your income against the income thresholds to work out the percentage of offset you can receive for the income year.

Use the calculator below to work out your:

  • private health reduction percentage
  • income for Medicare levy surcharge purposes.
Private health insurance offset calculator

How to claim the offset

You can claim your private health insurance offset as either a:

  • premium reduction which lowers the policy price your health insurer charges
  • refundable private health insurance offset when you lodge your tax return.

How you claim your offset may result in you receiving a private health insurance tax offset or having to repay some of your premium reduction. This depends on:

 

QC72200