Effective 1st July 2012, your eligibility to continue receiving the full 30% rebate for your private health insurance premiums is dependent on your income for surcharge purposes and where it falls based on three ‘Private Health Insurance Tiers’. For many, your rebate will remain the same; but for some, your rebate will be reduced or will even be removed. Higher income earners who are registered for rebate should consider nominating a tier to reduce the amount of rebate you receive as a reduction, and to avoid incurring a tax debt. It is important for higher income earners to retain the appropriate level of hospital cover to ensure their Medicare levy surcharge does not increase.