Proposed Health Insurance Changes Budeget 2009 - 2010
The Australian Government announced several changes to the Private Health Insurance Rebate and the Medicare Levy Surcharge (MLS).
Importantly these proposed changes still need to be approved by the Senate, and this can be a complex and lengthy process.
If the changes are approved by the Senate they will not be implemented until 1 July 2010, so there is plenty of time to fully understand what they may mean.
Proposed Changes - Federal Government Rebate
The Government’s proposed changes are to means test the rebate by introducing 'Private Health Insurance Tiers'. The proposed tiers are outlined below.
| Single | Couples/Family |
| Annual Income | Annual Income |
| Up to $75,000 | Up to $150,000 |
| $75,001 - $90,000 | $150,001 - $180,000 |
| $90,000 - $120,000 | $180,001 - $240,000 |
| $120,000 plus | $240,001 plus |
| Proposed Rebate Change (from July 2010) | ||
| Up to 65 years | 65 - 69 years | Over 70 years |
| 30% | 35% | 40% |
| 20% | 25% | 30% |
| 10% | 15% | 20% |
| 0% | 0% | 0% |
Proposed Changes – Medicare Levy Surcharge (MLS)
The Government's proposed changes are to means test payment of MLS tax for those who choose not to have private health cover. The proposed changes are outlined below.
| Single | Couples/Family |
| Annual Income | Annual Income |
| $75,001 - $90,000 | $150,001 - $180,000 |
| $90,000 - $120,000 | $180,001 - $240,000 |
| $120,000 plus | $240,001 plus |
| Proposed MLS tax Change (from July 2010) | ||
| 1% | ||
| 1.25% | ||
| 1.50% | ||
The key reasons and incentives for having private health cover do not change, these include:
- The peace of mind that it provides you and your family
- Greater control over who treats you, where and when
- The penalties for not being privately insured including the MLS and Lifetime Health Cover
- The growing crisis of confidence in the public hospital system
These proposed changes do mean it will be more important then ever to look for maximum value from your health insurance. iSelect can help you to understand your needs and cover so that your health cover is right for you and your family. Please call one of our trained consultants to discuss your needs and cover on 13 19 20 or get an online quote below.
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