Which statement about PHI rebates is true for lower-income individuals?

• A. PHI rebates apply equally to all incomes.
• B. Those on lower incomes receive more financial assistance through the private health insurance rebate.
• C. PHI rebates are only for high-income earners.
• D. Rebates are not government-funded.

Answer: (B)

The key idea is that the Private Health Insurance rebate is means-tested, meaning the amount of financial help you get depends on your income. In Australia, the rebate reduces private health insurance premiums, and the percentage you receive is higher for people with lower adjusted taxable incomes and tapers off as income rises. Because lower-income individuals qualify for a larger subsidy, they receive more financial assistance with their premiums. This design helps make private cover more affordable for those with less income while still being funded by the government. The other statements don’t fit: the rebate isn’t the same for everyone, it isn’t restricted to high-income earners, and the program is indeed government-funded.