Changes to the Private Health Insurance Rebate
From 1 July 2012 changes to the Australian Government Rebate on private health insurance mean that for some health fund members the rebate that they have received in the past will be reduced or removed altogether, depending on their income. Also from 1 July 2012, a higher Medicare Levy Surcharge will apply to higher income earners who do not have eligible private hospital cover. These changes are summarised in the table below.
|
|
Unchanged
|
Tier 1
|
Tier 2
|
Tier 3
|
|
Singles
|
$84,000 or less
|
$84,001 - $97,000
|
$97,001 - $130,000
|
$130,001 or more
|
|
Families
|
$168,000 or less
|
$168,001 – $194,000
|
$194,001 - $260,000
|
$260,001 or more
|
|
Age
|
Private Health Insurance Rebate
|
|
Under 65
|
30%
|
20%
|
10%
|
0%
|
|
65 – 69
|
35%
|
25%
|
15%
|
0%
|
|
70 and over
|
40%
|
30%
|
20%
|
0%
|
|
|
Medicare Levy Surcharge *
|
|
All ages
|
0.00%
|
1.0%
|
1.25%
|
1.50%
|
* Payable in addition to the 1.5% Medicare Levy if you don't have eligible hospital cover.
Prepay Your Premiums to Retain the Rebate
The Australian Taxation Office has confirmed that health fund members who prepay their private health insurance premiums before 1 July 2012 will receive the full Federal Goernment Rebate irrespective of their income.
By doing this you are effectively locking in a lower premium for the next 12 months. Depending on your income level and the cost of your premiums, this could result in a significant saving.
Please contact us if you would like to discuss this option and to see what the savings could mean to you.
