Private Health Rebate Tiers 2026-27
The full private health rebate tiers for 2026–27 — every income threshold, Medicare Levy Surcharge rate and rebate percentage by age, verified against privatehealth.gov.au.
Last updated: July 2026 · privatehealth.gov.au (Commonwealth Ombudsman) · 1 July 2026 – 31 March 2027 rebate set
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Rebates change every 1 April, thresholds every 1 July — we’ll email you when they do. No spam.
How to Read This Table
Find your income column (income for MLS purposes, combined for couples and families) — that’s your tier. Your tier then answers both money questions at once: the MLS row is the surcharge you pay on your whole income if you don’t hold hospital cover, and the rebate rows are the share of your premiums the government pays if you do, rising with the age of the oldest person covered.
2026–27 at a Glance
Surcharge-free: ≤$105,000 single / ≤$210,000 family · MLS if uncovered: 1% / 1.25% / 1.5%
Base rebate: 24.118% (<65) · 28.139% (65–69) · 32.158% (70+) · Tier 3: no rebate
MLS & Rebate Tiers — 1 July 2026 to 30 June 2027
| Base | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles income | ≤ $105,000 | $105,001–123,000 | $123,001–164,000 | ≥ $164,001 |
| Families income | ≤ $210,000 | $210,001–246,000 | $246,001–328,000 | ≥ $328,001 |
| MLS without hospital cover | 0% | 1.0% | 1.25% | 1.5% |
| Rebate — under 65 | 24.118% | 16.079% | 8.038% | 0% |
| Rebate — 65 to 69 | 28.139% | 20.098% | 12.058% | 0% |
| Rebate — 70 and over | 32.158% | 24.118% | 16.079% | 0% |
Family thresholds (including single parents and de facto couples) rise by $1,500 for each dependent child after the first. The rebate percentages shown apply 1 July 2026 – 31 March 2027; a new Rebate Adjustment Factor applies each 1 April. Thresholds index each 1 July (2025–26: $101,000 / $202,000 base).
Found your tier? Two things worth checking next
→ Your surcharge in dollars — income, family and cover status in, your MLS bill or rebate out. → Your take-home pay — where the ordinary 2% levy already sits in your payslip.Understanding the Tiers
The system is a pincer: as your income climbs the tiers, the surcharge for being uncovered rises (1% → 1.5%) while the rebate for being covered falls (24.118% → 0%). The pressure peaks at Tier 3, where an uncovered single at $164,001 pays at least $2,460 in pure surcharge while receiving no rebate help at all — which is why Tier 3 is where basic hospital cover most clearly beats the tax, and why insurers price entry-level policies with exactly this arithmetic in mind.
Two dates keep this table honest. Every 1 July the income thresholds index (they rose from $101,000/$202,000 to $105,000/$210,000 this year). Every 1 April the rebate percentages shrink slightly under the Rebate Adjustment Factor — the 24.288% set that applied since April 2025 became 24.118% from April 2026. If you’re reading this near either date, check the alert box above and we’ll tell you when the numbers move.
Frequently Asked Questions
How do I actually receive the rebate?
Two ways: as reduced premiums (you nominate your tier with your insurer and pay the discounted price all year), or as a refundable amount when you lodge your tax return. Most people take the premium reduction — just re-nominate if your income changes tier, or the difference reconciles at tax time.
Whose age sets the rebate percentage?
The oldest person covered by the policy. A couple where one partner is 66 gets the 65–69 rates on the whole policy — one of the few places in the tax system where being older is straightforwardly cheaper.
Does the rebate apply to extras cover too?
Yes — the rebate applies to premiums for hospital, extras and combined policies alike (Lifetime Health Cover loading, by contrast, applies only to the hospital component). But remember: only hospital cover saves you from the MLS.
Why did my rebate percentage drop slightly this April?
The annual Rebate Adjustment Factor — the government’s way of letting the rebate shrink relative to premium growth. It’s automatic and industry-wide, typically shaving a fraction of a percentage point each year — small annually, meaningful over a decade.
Also in Australia:
📋 Rates verified — Official sources: privatehealth.gov.au — Insurance Rebate · privatehealth.gov.au — Medicare Levy Surcharge
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the Private Health Insurance Ombudsman, the ATO or the Australian Government, and is not responsible for decisions you make based on it.
