In the 2009-10 Budget, the government announced a proposal to income test the private health insurance rebate.
From 1 July 2012, the private health insurance rebate and the Medicare levy surcharge are income tested against three income tier thresholds.
Higher income earners will receive less private health insurance rebate or, if they do not have the appropriate level of private patient hospital cover, the Medicare levy surcharge may increase.
Your income threshold calculation is based on the definition of income used to calculate Medicare levy surcharge for individuals or families.
| Unchanged | Tier 1 | Tier 2 | Tier 3 | |
| Singles | $84,000 or less | $84,001-$97,000 | $97,001-$130,000 | $130,001 or more |
| Families | $168,000 or less | $168,001-$194,000 | $194,001-$260,000 | $260,001 or more |
| Rebate | ||||
| Aged under 65 | 30% | 20% | 10% | 0% |
| Aged 65-69 | 35% | 25% | 15% | 0% |
| Aged 70 or over | 40% | 30% | 20% | 0% |
| Medicare levy surcharge | ||||
| Rates | 0.0% | 1.0% | 1.25% | 1.5% |