After 1 July 2012, entitlement to a private
health insurance rebate will be income tested and the Medicare Levy Surcharge
can increase. The new income thresholds
and rebate entitlements will be:-
|
Income
thresholds
|
|
Singles
|
$0 - $84,000
|
$84,001 - $97,000
|
$97,001 - $130,000
|
$130,001 and above
|
|
Families*
|
$0 - $168,000
|
$168,001 - $194,000
|
$194,001 - $260,000
|
$260,001 and above
|
|
Private
health insurance rebate
|
|
|
Unchanged
|
Tier 1
|
Tier 2
|
Tier 3
|
|
Aged under
65
|
30%
|
20%
|
10%
|
0%
|
|
Aged 65-69
|
35%
|
25%
|
15%
|
0%
|
|
Aged 70 or
over
|
40%
|
30%
|
20%
|
0%
|
|
Medicare
levy surcharge
|
|
Rates
|
0%
|
1%
|
1.25%
|
1.5%
|
The rebate entitlement will be determined on
lodgement of 2013 income tax return. The
difference between the entitlement and what has been obtained by the reduced
premium will be part of the tax assessment.
Private health funds and the Australian
Taxation Office have been explaining these changes. A taxpayer with income over $84,000 (single)
or $168,000 (family) will pay a higher health insurance premium.
A higher Medicare levy surcharge applies
for a taxpayer with inadequate cover.
Opportunity
Private health funds are accepting premiums
in advance (6 to 24 months) on the old rules, so ask immediately. The funds are not offering this openly, but
will accept the premium, and the Minister for Health has agreed.
This opportunity does not exist if a taxpayer
claims the lower premium when lodging their tax return.
26th-June-2012 | 