The ATO has released the private health insurance (PHI) rebate percentages that apply from 1 April 2026 to 30 June 2026. These updated percentages complete the rebate schedule for the full 2025–26 income year and are relevant to individuals and families who hold eligible private health insurance.
What Is the Private Health Insurance Rebate?
The private health insurance rebate is a government contribution to help cover the cost of private health insurance premiums. The rebate is income-tested, meaning the percentage you receive depends on your income for Medicare Levy Surcharge (MLS) purposes and your age. It can be claimed either as a reduced premium directly through your insurer or as a tax offset when lodging your annual tax return.
2025–26 Rebate Percentages
The table below sets out the rebate percentages for the 2025–26 income year, split across the two periods:
Income for MLS Purposes | Under 65 | 65–69 | 70 or Older | |||
| 1 Jul 2025 – 31 Mar 2026 | 1 Apr – 30 Jun 2026 | 1 Jul 2025 – 31 Mar 2026 | 1 Apr – 30 Jun 2026 | 1 Jul 2025 – 31 Mar 2026 | 1 Apr – 30 Jun 2026 |
$101,000 or less | 24.288% | 24.118% | 28.337% | 28.139% | 32.385% | 32.158% |
$101,001 – $118,000 | 16.192% | 16.079% | 20.240% | 20.098% | 24.288% | 24.118% |
$118,001 – $158,000 | 8.095% | 8.038% | 12.143% | 12.058% | 16.192% | 16.079% |
$158,001 – $202,000 | 0% | 0% | 4.048% | 4.019% | 8.095% | 8.038% |
$202,001 – $236,000 | 0% | 0% | 0% | 0% | 4.048% | 4.019% |
$236,001 – $316,000 | 0% | 0% | 0% | 0% | 0% | 0% |
$316,001 or more | 0% | 0% | 0% | 0% | 0% | 0% |
* Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the income thresholds are increased by $1,500 for each dependent child after the first.
Source: ATO website, 23 February 2026.
What This Means for You
The rebate percentages have decreased slightly from 1 April 2026, which is consistent with the annual adjustment process. If you receive the rebate as a premium reduction directly through your insurer, your insurer should apply the updated percentage automatically from 1 April 2026. However, you should verify this with your fund to ensure accuracy.
If your income has changed during the year, it is worth reviewing whether your current rebate entitlement tier is still appropriate. Receiving too large a rebate reduction upfront may result in a tax liability at year end, while under-claiming means a larger tax offset at return time.
Need Help? Speak With Us.
If you have questions about the PHI rebate, how it interacts with your tax return, or whether your current entitlement tier is correct, please contact our office. We are here to help. [email protected]