What is the Australian Government Rebate on Private Health Insurance?
The Australian Government offers a rebate to help make private health insurance more affordable. It applies to both Extras and Hospital cover, and the amount you’re eligible for depends on your income.
You’ve got two options for claiming the rebate:
- We can apply it straight to your policy to lower your premiums.
- Or, you can claim it when you do your taxes.
If you’re eligible for Medicare benefits, you might qualify for the rebate. How much you get will depend on your income. Here you can find the rebate levels applicable.
What’s the Medicare Levy Surcharge, and how can I avoid it?
The Medicare Levy Surcharge is an extra levy for people earning above a certain income threshold who don’t have private hospital cover.
The good news? All see-u hospital policies meet the Government’s requirements to help you avoid this surcharge. (And don’t worry—you only need Hospital cover, not Extras cover, to avoid the levy.)
Does the Medicare Levy Surcharge apply to me?
You’ll be hit with the Medicare Levy Surcharge 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 ranges from 1% to 1.5% of your income, depending on how much you earn. Got more than one kid? Good news—your family income threshold increases by $1,500 for each child after your first.
For all the details, head to the ATO website.
What is the Lifetime Health Cover loading?
Lifetime Health Cover (LHC) is a Government initiative designed to nudge people into getting private hospital insurance sooner rather than later—and sticking with it.
Here’s the deal: if you’re over 31 and don’t have private hospital cover, you could face an extra cost called a ‘loading’ when you finally decide to take the plunge. For every year after your 30th birthday that you don’t have cover, the Government adds 2% to your premium for 10 years.
Let’s break it down:
Say you wait until you’re 40 to get hospital cover. That’s 10 years after you turned 30, which means an extra 20% on your premium, 2% each year—for 10 years.
The longer you delay, the higher the loading.
So, if you’re 31 or older, it might be worth thinking about getting hospital cover now to save yourself some dollars later.
Still got questions? The see-u crew is here to help!