Act Now – Save On Health Insurance Premiums

Posted on Jun 28, 2012 | 0 comments

Here’s a reminder of our post from April regarding the Private Health Insurance rebate.

In a nutshell, if you earn over $84,000 per year YOUR PREMIUMS WILL RISE on July 1st. However, if you prepay your premiums for the next year by June 30th 2012 you will lock in your premium and keep the 30% rebate.

You could save hundreds or even thousands of dollars! But you must act now!

Important!

Changes to rebates and Medicare levy!

 

In the 2009-10 Budget, the government announced a proposal to income test the private health insurance rebate.

From 1 July 2012, the private health insurance rebate and the Medicare levy surcharge will be income tested against three income tier thresholds.

Higher income earners will receive less private health insurance rebate or, if they do not have the appropriate level of private patient hospital cover, the Medicare levy surcharge may increase.

Your income threshold calculation is based on the definition of income used to calculate Medicare levy surcharge for individuals or families. The 2012-13 income thresholds are provided 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
Rebate
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  0.0%  1.0%  1.25%  1.5%

If you have any concerns about how the surcharge may affect you and your tax planning please give JWA a call.

Jo-Ellen Hutchison | Tax Manager

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