What is the Australian Government Rebate on Private Health Insurance?
The Australian Government offers a rebate to help cover the cost of your private health insurance premium and can be claimed on both Extras and Hospital cover. The amount of rebate you might receive is calculated based on your income. We can apply your rebate directly to your health cover policy to reduce the amount of your premium or you can claim your rebate at tax time.
If you're eligible to receive Medicare benefits then you may qualify for the rebate. How much you're eligible to receive depends on your income.
What is the Medicare Levy Surcharge?
The Medicare Levy Surcharge is an additional tax charged to people who earn more than the specified threshold and don’t have Private Hospital cover. All see-u hospital policies satisfy the Government criteria to avoid the surcharge (to avoid the tax, you only need Hospital cover, not Extras cover).
Does the Medicare Levy Surcharge apply to me?
The Medicare Levy Surcharge will apply to you if you earn over $97,000 a year as a single, or $194,000 as a couple or family and don't have private hospital cover. The surcharge varies from 1% to 1.5% depending on your income. For families with more than one child, your family income threshold increases by $1,500 for each child after your first.
For more information, visit https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge
What is the Lifetime Health Cover loading?
‘Lifetime Health Cover’ is a Government initiative designed to encourage people to take out private hospital insurance earlier in life and maintain their cover. If you’re over 31 years old and don’t have hospital cover, this could affect you.
People who delay taking out cover will pay a 2% loading on top of their premium for every year they’re aged over 30 when they first take out private hospital cover and the loading applies for 10 years. For example, if you took out private hospital cover for the first time at the age of 40, you would have an additional 20% on your premium every year for 10 years.