Changes to the income tiers from 1 July 2024
The government’s income tiers are increasing on 1 July 2024. This means that more Australians could claim a higher rebate to reduce their health insurance payments and could have tax implications for the 2024–25 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:
|
Step 1: Income Threshold From 1 July 2024 |
Step 2: Age & rebate amount Age of the oldest person on your cover |
Medicare Levy Surcharge (This will only apply if you don't have private hospital cover) |
|||
|---|---|---|---|---|---|
| Under 65 years | 65-69 years | 70+ years | |||
| Base Tier |
Single |
24.608% | 28.710% | 32.812% | 0% |
| Tier 1 | Single $97,001 - $113,000 Family* $194,001 - $226,000 |
16.405% | 20.507% | 24.608% | 1% |
| Tier 2 | Single $113,001 - $151,000 Family* $226,001 - $302,000 |
8.202% | 12.303% | 16.405% | 1.25% |
| Tier 3 | Single $151,001 or more Family* $302,001 or more |
0% | 0% | 0% | 1.5% |
*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.