&geometry(290x117))
2027 FY Private Health Rebate Thresholds
Private health insurance rebate thresholds for 2026–27
The Australian Government has released the private health insurance income thresholds and rebate percentages for the 2026–27 financial year.
Your entitlement to the private health insurance rebate depends on your age, income and family circumstances. As your income increases, the rebate reduces and may cease entirely.
The following thresholds apply for the full 2026–27 financial year. The rebate percentages shown apply from 1 July 2026 to 31 March 2027.
| Base tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Single income | $105,000 or less | $105,001–$123,000 | $123,001–$164,000 | $164,001 or more |
| Family income* | $210,000 or less | $210,001–$246,000 | $246,001–$328,000 | $328,001 or more |
| Under 65 years old | 24.118% | 16.079% | 8.038% | 0.000% |
| 65–69 years old | 28.139% | 20.098% | 12.058% | 0.000% |
| 70 years old and over | 32.158% | 24.118% | 16.079% | 0.000% |
*The family income threshold increases by $1,500 for each Medicare levy surcharge dependent child after the first child.
How could this affect you?
If your income changes during the year, you may move into a different rebate tier. This could change the amount you pay for private health insurance or result in an adjustment when you lodge your income tax return.
Clients approaching an income threshold should consider reviewing the rebate tier nominated with their private health insurer. Higher-income clients should also be aware that their income and level of hospital cover may affect whether the Medicare levy surcharge applies.
The rebate rates applying from 1 April 2027 are expected to be released in March 2027.
If you are unsure how these changes may affect your financial position, please contact McKinnon Financial Planning to discuss your circumstances.
Source: Australian Taxation Office, “Income thresholds and rates for the private health insurance rebate”, 22 June 2026. This information is general in nature and does not take into account your personal circumstances.
| Tags:Tax |
Post comment
