Both my wife and I have got "Excess Private health reduction or refund (rebate reduced)" I understand why as our rebate was defaulted at 24.6% when it should be lower. However what I don't understand is the amount, our total private health is only $4,348 for the family, we received total rebate of $1,070 (=24.6%), however both of our tax return we were liable for $713.37, which if you add them together it becomes $1,426.74, which is greater than the TOTAL amount of rebate we received. We should be on tier 2, which means our rebate should be corrected to $356.54.
$1,070 - $356.54 = $713.46 which is roughly how much in TOTAL reduction between the two of us, but now we have been reduced the same amount on both of our returns. How can we rectify this? On both of our return we answered "no" to claim our spouses' rebate.