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Your household income and the Government Rebate

If you’re already a member of a health fund and have had an increase to your household income in the past year, you need read this.

The Government’s health insurance rebate is now income tested – so the more you earn… the less you get. The income thresholds are the same as those for the Medicare Levy Surcharge (below).

If your household income has increased from one level to the next, your rebate entitlement has decreased – and you’ll need to let your health fund know.

For example, Tracy and Joe have a household income of $175,000 and claim the highest rebate of about 28%. If their income increases to $185,000, their rebate entitlement will reduce to about 18%.

To ensure they don’t have to repay the difference to the ATO at tax time they need to tell their health fund about their new higher income so the amount of rebate they’re claiming can be adjusted.

Unsure? Feel free to talk to us about what the Government Rebate means for you and your family. We’re here Monday – Friday, from 8.30am – 6.30pm.

Find out more about:
Your household income at tax time
Your age at tax time

Income vs MLS vs Government Rebate
Single $90,000 or less $90,001 – $105,000 $105,001 – $140,000 $140,001 or more
Families $180,000 or less $180,001 – $210,000 $210,001 – $280,000 $280,001 or more
Medicare Levy Surcharge 0% of taxable income 1.0% of taxable income 1.25% of taxable income 1.5% of taxable income
Government Rebate 27.820% 18.547% 9.273% 0%


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