From 1 July, the income thresholds for private health insurance rebate purposes will increase.
Income thresholds
- The private health insurance rebate is income tested
- This means that if your income is higher than the relevant income threshold, you may not be eligible to receive a rebate
- Your rebate entitlement depends on your family status on 30 June
- Different thresholds apply depending on whether you have a single income or a family income.
When you lodge your tax return, we calculate your income for surcharge purposes and determine your rebate entitlement.
Your entitlement is also based on the age of the oldest person covered by the policy.
The income thresholds used to calculate the Medicare levy surcharge and private health insurance rebate have increased from 1 July 2024.
| 2024–25 Income thresholds | ||||
| Family status | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single | $97,000 or less | $97,001 – $113,000 | $113,001 – $151,000 | $151,001 or more |
| Family | $194,000 or less | $194,001 – $226,000 | $226,001 – $302,000 | $302,001 or more |
Note: The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child
Family status on 30 June
Your family status on the last day of the income year (30 June) determines whether the single or family income thresholds apply to you. The information below provides guidance to when single or family thresholds apply.
Depending on your situation, your income may be tested against either the Single income thresholds or Family income thresholds.
Single income thresholds
If you are single on the last day of the income year and have no dependents, you are income tested against the single income thresholds.
This applies even if you had a spouse for the majority of the year, as long as you were single on the last day (30 June) of the income year.
If you separated from your spouse during the financial year and remain single with no dependents on 30 June, your rebate entitlement is calculated only on your own income.
Your entitlement to a private health insurance rebate is based on your income for surcharge purposes.
If you were single on 30 June, but had dependent children, you are considered a family and will be income tested using the family income thresholds.
Family income thresholds
If you had a spouse on the last day of the income year (30 June), your income will be tested against the family income thresholds. Your entitlement to a private health insurance rebate is assessed on your and your spouse’s combined income for surcharge purposes.
The family income thresholds also apply if:
- you are a single parent with one or more dependents
- you don’t have a spouse on the last day of the income year and you either maintain a dependent child or children or contribute in a substantial way to the maintenance of a dependent child.
If your spouse died in the income year and you were single on 30 June with no dependants, your and your spouse’s income is used for surcharge purposes to determine your entitlement under the family income thresholds.
If you have two or more children, the family income threshold is increased by $1,500 for every Medicare levy surcharge dependent child after the first child.
Note: Dependent children’s income is not included when calculating family income. Medicare levy surcharge dependent child is different to dependent persons who may be covered by your private health insurance policy.