Proposed changes to the Private Health Insurance Rebate
Updated: 15 June 2026
Many Australians aged 65 and over receive a higher rebate from the government that reduces the cost of their private health insurance premiums.
The government is proposing to lower this rebate˚, which would mean those on lower and middle incomes would receive less government support and would pay more for their health cover.
The proposed change must be approved by Parliament before it can take effect and, if passed, would apply to members of all health funds from 1 April 2027.
What's happening?
How it works today
- Australians aged 65–69 receive a potential rebate of up to 28%^
- Australians aged 70 and over receive a potential rebate of up to 32%^
- The higher rebate helps reduce the cost of private health insurance premiums
The proposed change
- The higher rebate for members aged 65–69 and 70+ would be removed
- Australians aged 65+ would move to the same rebate as others in their income tier
- Many health fund members over 65 would receive a lower government contribution towards their premiums
How could it impact me?
While the impact would vary depending on your age, income and level of cover, common concerns include:
Reduced support
Rebates would be based on income alone, with no age-based increases to support older people with lower, fixed incomes.
Significant cost increases
Premiums could rise by as much as $1,600 a year for some older Australian couples*, adding to cost‑of‑living pressures.
Longer hospital waitlists
If private hospital cover becomes unaffordable for more people, public hospital wait times would grow due to increased demand.
What happens next?
Teachers Health Group is working with Members Health Fund Alliance to understand the potential impact of these proposed changes. Together, we're focused on:
- Supporting access to affordable private healthcare
- Providing you with timely updates and information
A date for a Parliamentary vote has not yet been announced. The proposed changes are not law and must be passed by Parliament before they can take effect.
You don't need to do anything at this stage. Your current cover, rebate (if applicable) and premium remain unchanged.
We'll keep you updated as more information become available.
^Rebate levels vary depending on age and income tier. Individual entitlements may differ and are subject to change in line with government policy.
*Source: Private Healthcare Australia budget submission 2026-27
