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.
Example:
Spouse 1, Taxable income: 91177, Age: 42.
Spouse 2, Taxable income: 49900, Age: 32.
The total family taxable income: 91177 + 49900 = 141077.
This puts them in the Family Base Tier income threshold: $180,000 or less.
They are both under 65, which means they are eligible for a 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.
