Important Tax Update
Urgent message-Claim the 30% rebate on health cover
The new means test on private health cover after July 1 will affect individuals earning more than $84,000 and families on more than $168,000. It is a progressive means test that will phase out the 30% rebate to zero for singles earning more than $130,000 a year and families earning $260,000. Please see the table below:
Income thresholds Private health insurance rebate
Single Couple Under 65 65-69 70+
Less than $84,000 Less than $168,000 30% 35% 40%
$84,001 to $97,000 $168,001 to $194,000 20% 25% 30%
$97,001 to $130,000 $194,001 to $260,000 10% 15% 20%
$130,001 and above $260,001 and above 0% 0% 0%
Any premiums paid before 1st July will receive the full rebate regardless of income level. Therefore, it is worthwhile to prepay the premiums.
If you will be affected by the changes to the rebate we strongly suggest to immediately contact your health insurance provider to arrange paying the premium 12 months in advance, in order to secure the existing rebate as the savings can be significant as per the example below:
You call your private health insurer and they advise your current premium is $3,000 if you pay annually. This is after the current 30% rebate is applied, meaning the Government has already paid $1,286. (i.e. the actual total premium is $4,286.)
From 1st July your rebate will drop from 30% to 0%. This means your premium will jump from $3,000 up to $4,286 per year.