How Much Does Health Insurance Cost in Australia?
How Much Does Health Insurance Cost in Australia? Understanding the cost of private health insurance is key to determining if it’s worth it to get health insurance in Australia. The price varies significantly depending on your age, income, state, coverage level, and whether you’re taking hospital-only, extras-only, or combined cover.
How Much Does Health Insurance Cost in Australia?
📊 Average Costs by Cover Type
Below is a general overview of monthly premiums in Australia for a single adult under 65 without LHC loading:
| Type of Cover | Monthly Cost (Approx.) | Annual Cost (Approx.) |
|---|---|---|
| Basic Hospital Only | $90 – $110 | $1,080 – $1,320 |
| Bronze Hospital | $110 – $130 | $1,320 – $1,560 |
| Silver Hospital | $130 – $160 | $1,560 – $1,920 |
| Gold Hospital | $170 – $250 | $2,040 – $3,000 |
| Extras Only | $20 – $70 | $240 – $840 |
| Combined Hospital + Extras | $150 – $350 | $1,800 – $4,200 |
Note: Costs are averages as of early 2025, based on major providers across Australia (e.g., Medibank, Bupa, HCF, NIB).
🧾 Government Rebates and Income Tiers
The Australian government offers private health insurance rebates based on your income:
| Income Tier (Singles) | Rebate % (under 65) |
|---|---|
| $93,000 or less | 24.608% |
| $93,001 – $108,000 | 16.405% |
| $108,001 – $144,000 | 8.202% |
| $144,001 and above | 0% |
For families, the income thresholds are doubled. This rebate is applied automatically to reduce your premium or claimed at tax time.
💸 What’s Driving the Cost?
Age Loading (LHC):
If you take out hospital cover after age 31, a 2% premium increase applies for each year delayed, up to a maximum of 70%.Location:
Insurance premiums differ by state due to healthcare costs. For example:NSW & Victoria tend to be higher
TAS & SA are usually more affordable
Excess Options:
Policies with a higher excess (e.g., $750) have lower monthly premiums, while low-excess plans cost more monthly.Coverage Tier:
Gold-tier covers nearly everything (like pregnancy, joint replacements), while Basic-tier covers only essentials like appendix removal and hernia repair.
🧠 Insight:
According to the Australian Prudential Regulation Authority (APRA), premiums have increased by an average of 2.9% annually over the past 5 years. But many Australians are switching providers or downgrading to control costs.
🧮 Real-Life Cost Example:
Liam, 35, Brisbane
Income: $100,000/year
Cover: Silver Hospital + Medium Extras
Premium: $2,600/year
Rebate: 16.405% → $426 saving
Final Cost: $2,174/year or $181/month
Liam also avoids a $1,000 Medicare Levy Surcharge, so in net terms, he’s paying only $1,174 extra while getting fast surgery access, optical/dental benefits, and choice of doctor.
So, is it worth it to get health insurance in Australia in terms of cost? If you’re earning above the MLS threshold, value flexibility in your care, and expect to use extras like dental or physio, the math often works in your favor.