The private health insurance rebate makes having health cover more accessible and affordable by applying a rebate to your premium.

The rebate is an incentive for individuals and families to take our private health insurance. Depending on your income and age the rebate can help you reduce your premium, so you may pay less while getting the benefits private health cover has to offer.

Will you be affected?

Current rebate thresholds:

What happens if you claim the wrong rebate amount?

If from 1 July, you claim a higher rebate than you are eligible for on your Navy Health premium, the amount of the wrongly claimed amount will be added as a liability to pay back on your tax return for that year. If you think you’ll be affected, we recommend you nominate your rebate amount by logging into Online Member Services.

What happens if you drop your health cover?

If you fall into Tier 1,2, or 3 and you do not have private hospital cover from 1 July, you will incur the Medicare Levy Surcharge (MLS) on your taxable income, which will be applied as per the table above.

If you are a serving member, you are currently exempt from the Medicare Levy, however you are not exempt from the MLS (if you have a combined income with your partner) that will be calculated on your household income test.

So if you decide to cancel your private hospital cover, your combined household income (yourself and your partner) will be used to calculate any MLS that may apply, as per the above table, despite you serving full-time in the ADF. If you have any questions regarding your circumstances, please call us on 1300 306 289.