Proposed Australian Government Rebate Changes

Ben Thomas
Written by Ben Thomas
Ben Thomas
Written by Ben Thomas Chief Experience Officer (CXO)

Ben has over 17 years of experience in Private Health Insurance across Customer Experience, Marketing and Sales. His work focuses on transforming member journeys, strengthening digital and marketing performance, and creating clearer, more personal interactions across the entire lifecycle. With deep expertise in acquisition, retention and product strategy, Ben draws on his marketing and product experience to support smarter, member-focused design. He also developed a comprehensive Product Landscape Analysis tool used to understand market competitiveness and enable experience-led product development.

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Published: May 15, 2026
Last updated: August 6, 2026

The Australian Government has introduced legislation proposing changes to the Private Health Insurance Rebate for Australians aged 65 and over.

If passed, the changes would reduce the higher age-based rebate percentages currently available to older Australians and align the rebate with the standard income-tested rates that apply to other age groups.

The proposed changes have been referred to the Senate Community Affairs Legislation Committee for inquiry, with public submissions open until 21 August 2026.

If the legislation is passed, the proposed changes are expected to apply from 1 April 2027.

What has been proposed?

Under the proposed changes, Australians aged 65 and over would no longer receive a higher rebate percentage based on age.

The rebate would continue to be income tested, but age would no longer increase the percentage of rebate a member receives.

For many older Australians, this would increase the amount they pay towards their private health insurance premiums.

What would change under the proposal?

The proposed changes would not remove the Private Health Insurance Rebate entirely for Australians aged 65 and over.

The proposal would remove the additional age-based rebate percentages currently available to older Australians.

Current system Proposed system
Australians aged 65+ receive a higher rebate percentage based on age and income tier. Australians aged 65+ would receive the same rebate percentage as younger Australians within the same income tier.
The rebate is income tested. The rebate would remain income tested.

Proposed Percentage Changes

Rebate Tier 65-69yo (current) 70+yo (current) Proposed
Base Tier 28.139% 32.158% 24.118%
Tier 1 20.098% 24.118% 16.079%
Tier 2 12.058% 16.079% 8.038%
Tier 3 0% 0% 0%

What does this mean for Phoenix Health members?

At this stage, no changes have been made to member cover or current rebate arrangements.

We understand many members are concerned about the potential impact these changes could have on the cost of private health insurance.

Phoenix Health is continuing to seek further information about the proposal and how it may affect members if introduced.

What is Phoenix Health doing?

Phoenix Health continues to advocate for the interests of our members through both the Members Health Fund Alliance (MHFA) and Private Healthcare Australia (PHA).

We believe any changes to the Private Health Insurance Rebate should carefully consider the impact on older Australians and the affordability of private health insurance.

Following the referral of the proposed changes to the Senate Community Affairs Legislation Committee, both MHFA and PHA are encouraging Australians to share their views through the Senate inquiry.

Have your say

The Senate Community Affairs Legislation Committee is accepting public submissions until 21 August 2026.

If you’d like to learn more or make a submission, visit the Members Health Fund Alliance or Private Healthcare Australia websites.

Do members need to do anything?

No action is required at this stage.

We will continue to keep members informed as more information becomes available and will provide updates if the proposed changes progress further.