Changes to the income tiers from 1 July 2023

The government’s income tiers are increasing by approximately 3% on 1 July 2023. This means that more Australians could claim a higher rebate to reduce their health insurance payments and could have tax implications for the 2023–24 financial year.

The income tiers are used to calculate the rebate on Private Health Insurance and Medicare Levy Surcharge if you do not have hospital insurance.

The tier changes are detailed below:

  Income Threshold
until 30 June 2023 		 Income Threshold
from 1 July 2023
Base Tier

Single
$90,000 or less
Family*
$180,000 or less

Single
$93,000 or less
Family*
$186,000 or less
Tier 1

Single
$90,001 - 105,000
Family*
$180,001 - 210,000

Single
$93,001 - 108,000
Family*
$186,001 - 216,000
Tier 2

Single
$105,001 - 140,000
Family*
$210,001 - 280,000

Single
$108,001 - 144,000
Family*
$216,001 - 288,000
Tier 3

Single
$140,001 or more
Family*
$280,001 or more

Single
$144,001 or more
Family*
$288,001 or more

*If you're a family with children, the income threshold for each tier is increased by $1,500 for every child after your first.

Family includes single parent families.

You can visit our rebate page to change your rebate tier for the next financial year.

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