Private health insurance rebate changes
A package of Bills to means test the 30% private health insurance rebate has made its way through Parliament. The changes will mean the amount of rebate available will depend on an income test for each financial year for individuals and families. The changes will apply from 1 July 2012 and will introduce three new "Private Health Insurance Incentive Tiers". In conjunction with this, and also from 1 July 2012, the rate of Medicare levy surcharge for individuals and families without private patient hospital cover will increase depending on their level of income.
TIP: Individuals and families should be mindful of the 1 July 2012 start date. Further, some health insurance companies have indicated their intention to increase premiums. Please contact our office for more information.
|
Table: Private Health Insurance Incentive Tiers from 1 July 2012 | ||||||
|
Tier |
Income ($) |
Private health insurance rebate |
Medicare levy surcharge | |||
|
Singles |
Families |
Under 65 yrs old |
65 – 69 years old |
70 years or over | ||
|
0 - 84,000 |
0 - 168,000 |
30% |
35% |
40% |
Nil | |
|
1 |
84,001 - 97,000 |
168,001 - 194,000 |
20% |
25% |
30% |
1% |
|
2 |
97,001 -130,000 |
194,001 - 260,000 |
10% |
15% |
20% |
1.25% |
|
3 |
130,001+ |
260,001+ |
0% |
0% |
0% |
1.5% |
Note: The thresholds increase annually, based on growth in Average Weekly Ordinary Time Earnings (AWOTE). Single parents and couples (including de facto couples) are subject to the family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
