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- How to save on Health Insurance
- About Medicare Levy Surcharge (MLS)
- Australian Government Rebate
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Private Health Insurance and Tax
The Australian Government has a number of initiatives in place aimed at encouraging Australians to take out private hospital insurance. These initiatives include the Australian Government Private Health Insurance Rebate, the Medicare Levy Surcharge and Lifetime Health Cover.
The Australian Government Private Health Insurance Rebate aims to make private health insurance more affordable and accessible by providing a rebate to some Australians based on their level of income.
The Medicare Levy Surcharge (MLS) is an additional tax (on top of the standard 2% Medicare Levy) applicable to Australian taxpayers who don’t have private hospital cover. The MLS encourages Australians to take out private hospital insurance in order to reduce the demand on the public Medicare system. MLS applies to those who earn over $90,000 (single) or $180,000 (family) and don’t have private hospital cover.
Lifetime Health Cover (LHC) is aimed at encouraging Australians to take out private hospital cover earlier in life, and maintain that cover through their lifetime. If you do not have private hospital insurance, the LHC adds 2% loading to an individual’s private hospital premium for every year over the age of 30 they do not have private hospital cover. The LHC is payable for ten years. The maximum loading is 70%.
Understanding what these initiatives are, and how they can impact or benefit you, can help you save time, money and tax.
Call our experts on 1300 905 472 to discuss your individual health insurance needs.
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