Health insurance tax offset

Your entitlement to a private health insurance rebate or tax offset depends on your income level. If you have private health insurance:

• the amount of private health insurance rebate you are entitled to receive is reduced if your income is more than a certain amount
• we will calculate the amount of private health insurance rebate you are entitled to receive when you lodge your tax return

You can claim your private health insurance rebate as a:

• premium reduction, which lowers the policy price charged by your insurer
• refundable tax offset through your tax return

This may result in you receiving a tax offset or a liability, depending on:

• how you claim your rebate
• the level of rebate you have claimed for your policy
• your income for Medicare levy surcharge purposes

Source: https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/Health-insurance/