Private Health Insurance Rebate: Couples or 2x Singles?

Hi Everyone,

This is more of a financial question than a health question regarding the private health insurance rebate based on income test:

Is the income both based on household income regardless of couples insurance policy or taking out 2 singles policies?

for example:
Husband earns 300k and wife not working - if couples policy is taken out then there will be 0% rebate due to household income >280k however what if 2 singles were taken out? Is it simply based on the person's taxable income or still based on the household income?


  • still based on household income.

  • It is based on how you declare that in tax. There is a section the tax return whether you have a spouse or not

    Sorry I can't advise if you should declare yourself as two single individuals in tax return.

    The low incomer is not liable for Medicare levy surcharge if she earns less than a threshold amount. You can find that on the ATO website

    • To add +1 and here is the ATO page

      MLS is $90k for singles and $180k for families.

      Therefore if one partner is making $0 and the other is making $100k the $100k person needs to have private health insurance. If that single person suddenly makes $190k then both people needs to have private health insurance.

      The problem is when you the $0 income partner might be working part time or contract and ends up pushing you over.

      • If it’s a couple with 1 person earning $0 and the other earning $100k, neither have to pay the MLS, so long as it declared on their tax returns they are a couple.

        If the combined income is >$180k then both need private health or they’ll be liable for MLS.

        • You are right. Thanks for the correction.

        • If the combined income is >$180k then both need private health or they’ll be liable for MLS.

          As said on ATO website in the link:

          if you had a spouse for the full year, you do not have to pay the MLS if your family income exceeds the threshold, but your own income for MLS purposes was $22,801 or less.

          Anyhow, I include MLS part for OP just in case he is taking health insurance for his wife to avoid MLS. But It might just be him getting a family quote from insurer and wonder if his wife can get rebate while he can't (based on his examplel

  • Based on your relationship status.
    On last day of find year. Ato sucks that they do this yet you can’t split income.

    Can always separate for a week.