Federal government 30% rebate
- Who is eligible for the Federal Government 30% Rebate?
- What rebate am I entitled to?
- How can I claim the Government Rebate?
- What is the Savings Provision Entitlement?
- How does the Savings Provision Entitlement work?
- How do I lose the Savings Provision Entitlement?
- When does the Savings Provision Entitlement not apply?
- How do you retain the higher rebate when transferring to another fund?
Who is eligible for the Federal Government 30% Rebate?
The rebate is available to anyone who is entitled to full Medicare benefits and holds private health insurance - no matter what your level of cover, income or type of cover.
What rebate am I entitled to?
The rebate has three levels and is calculated by the age of the oldest person on your membership.
| Age of oldest person on your membership | Federal Government Rebate |
|---|---|
| 64 years or younger | 30% |
| 65 years - 69 years | 35% |
| 70 years or older | 40% |
How can I claim the Government Rebate?
You can claim the Government Rebate in three different ways:
- as a reduction on your premium paid;
- as a refund from a Medicare office; or
- as a rebate through your annual tax return.
What is the Savings Provision Entitlement?
The Savings Provision Entitlement is a special provision to ensure that people remaining on a membership that have been eligible for the 35% or 40% rebate do not have their rebate reduced to 30% when the person aged 65 years or older leaves or cancels the membership.
How does the Savings Provision Entitlement work?
When the person 65 years or olders leaves or cancels the original policy, for example, due to death, divorce or separation, the Savings Provision Entitlement is triggered.
The original policy will then continue to receive the higher rebate. In addition, the people on the policy at the time the Savings Provision Entitlement is triggered, other than dependants, being anyone under the age of 21 and full time student dependents under the age of 25 years (a ' dependent'), will be entitled to receive the higher rebate if they transfer to a single policy or even a different fund.
If a person on the policy is aged less than 65 years and older leaves the policy before the the 65 years and older member does then the Savings Provisions Entitlement will not be triggered and the person leaving the policy will have their rebate revert back to 30%.
How do I lose the Savings Provision Entitlement?
If a policy is receiving the higher rebate as a result of a Savings Provision Entitlement, when another person, other than a dependant, is added to this policy the Savings Provision Entitlement will be lost. The rebate entitlement for the policy will be recalculated based on the age of the oldest person on the policy.
When does the Savings Provision Entitlement not apply?
A dependant is not entitled to take the Savings Provision Entitlement with them. This means if they take out their own policy, their rebate will revert back to the 30% rebate.
How do you retain the higher rebate when transferring to another fund?
If you believe the Savings Provision Entitlement applies to you and you are under 65 years old, to retain the increased Government Rebate when transferring to another fund, it is essential that you request a Savings Provision Clearance Certificate from your departing fund and provide this to your new fund.
To find out more information on the Federal Government Rebate or the Savings Provision Entitlement, simply call 131 137.