Private Health Insurance

Do you need it, how much does it cost and where to compare policies…

If you are making plans to move to Australia, applying for health insurance is an important part of the process. Aside from that, it’s always a good idea to prepare for the unexpected.

In Australia, the public health system Medicare covers most Australian residents’ healthcare needs. However, Medicare does not cover everything, and you can choose to take out private health insurance to get a wider range of healthcare options and more comprehensive coverage.

There are two types of health insurance: hospital & general treatment (ancillary or extras). You can buy them separately, or most funds offer combined policies. There will be limitations on what and when you can claim with any policy you buy.

Most Australians with private health insurance currently receive a rebate from the Australian Government to help cover the cost of their premiums. You can find more information on this rebate below.

Medicare Australia

Please visit my Medicare Australia post for information on Medicare, including how to apply, what you’re entitled to, healthcare costs, and more.

Do you have health insurance in NZ?

For the same reasons, you should get health insurance in Australia

Australian residents are proactively encouraged to take out Private Health coverage (Health Insurance) to complement Medicare services, including the 30% Health Insurance Rebate from the Australian Government.

How much does Health Insurance cost in Australia?

Health insurance costs approximately $2,000 per year depending on your circumstances (single, couple, family or single parent) and the level of coverage you select.

Compare Policies

To allow for a simpler comparison of health insurance products, all Australian health insurers must provide details of each of their products to the private health insurance ombudsmen. PrivateHealth.gov.au contains details of every health insurance policy available in Australia and its Private Health Information Statement.

This government website provides facts that are not biased or trying to sell you anything! It provides comprehensive, independent private health insurance information.

Search tips

• All you need is who is covered, where you live, and the type of cover you want.
• Selecting specific hospital services or general treatments will provide more tailored results but will take a bit longer.
• It’s worth looking at the restricted insurers to see if you qualify for any of them. It could save you money.
• Click or tap on the icon for more information.

Start comparing policies here.

Australian Government Private Health Insurance Rebate

Most Australians and New Zealanders on an SCV with private health insurance currently receive a rebate from the Australian Government to help cover the cost of their premiums. The private health insurance rebate is income-tested. The table below details the different rebate amounts. The rebate applies to general treatment, hospital and ambulance policies. It does not apply to overseas visitors’ health cover. The rebate levels applicable from 1 April 2021* are:

Singles Families	≤$90,000 ≤$180,000	$90,001-105,000 $180,001-210,000	$105,001-140,000 $210,001-280,000	≥$140,001 ≥$280,001
Rebate
	Base Tier	Tier 1	Tier 2	Tier 3
< age 65	24.608%	16.405%	8.202%	0%
Age 65-69	28.710%	20.507%	12.303%	0%
Age 70+	32.812%	24.608%	16.405%	0%

Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the income thresholds are increased by $1,500 for each child after the first.

*The income thresholds are indexed and will remain the same until 30 June 2023.

How can you work out my rebate entitlement?

You can use the table above or the Private Health Insurance Rebate Calculator on the ATO website, or you can call the Australian Taxation Office (ATO) on 132 861.

Claiming the Rebate

If you are eligible for the rebate, there are two ways you can claim it:

• as a premium reduction through your private health insurer (you pay less upfront to your insurer). If you want to claim your rebate as a reduced premium, contact your insurer or
• as a tax offset when lodging your annual tax return. For more information about claiming your rebate as a tax offset, visit the Australian Taxation Office or call 132 861.

If you choose to receive your rebate through your insurer, you will be asked to nominate the income tier you expect to fall into. You can nominate your tier by contacting your insurer or by filling out the Medicare rebate claim form.

For further information about claiming the rebate, please visit the ATO’s website: Private Health Insurance Rebate.

You might be interested in…

The below posts might interest you:

• Medicare Australia
• Having a baby in Australia
• Can an NZ citizen get an Australian benefit or pension?

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