The entitlement to a private health insurance rebate or tax offset depends on both:
the age of the oldest person the policy covers,
the single or family income for Medicare levy surcharge purposes, depending on the family status.
The income thresholds and rates can be found on the ATO website - Income thresholds and rates for the private health insurance rebate .
In this example we have the following:
Spouse 1
Taxable income: 91177
Age: 42
Private Health details
Spouse 2
Taxable income: 49900
Age: 32
Private Health details
Their total family taxable income: 91177 + 49900 = 141077
This puts them in Family Base Tier income threshold: $180,000 or less.
They are both under 65 which means they are eligible for 24.608% rebate.
Calculation:
For the first part of the year spouse 1 paid 500.
They are eligible for 24.608% rebate: 500 x .24608 = 123.04
They received 100.
For the second part of the year spouse 1 paid 1500.
They are eligible for 24.608% rebate: 1500 x .24608 = 369.12
They received 100.
Total eligible rebate: 123.04 + 369.12 = 492.16
Total received: 100 + 100 = 200
The difference between the eligible rebate and the total received: 492.16 - 200 = 292.16
Meaning they get a 292.16 offset.
