As from the 1st July 2012 changes are being made to the Medicare Levy Surcharge and the Private Health Insurance Rebate.
The Medicare Levy Surcharge has always been a penalty for having a higher income and not having private health insurance. The levy now increases above the 1% of previous years to a new maximum of 1.5% if your income is greater than $130,000 for a single person and $260,000 for a family.
What has significantly changed is the Private Health Insurance Rebate, the Rebate was either received as a reduction to your Private Health Insurance premiums or as a rebate on your lodged tax return. The rebate depending on your age would have been a minimum amount of 30%. Income thresholds now apply to the rebate, if your income is greater than $130,000 for a single person and $260,000 for a family you will now long receive any rebate to reduce your private health insurance premiums.
Please follow the table below to see how your situation may have changed.
|Unchanged||Tier 1||Tier 2||Tier 3|
$84,000 or less
$130,001 or more
$168,000 or less
$260,001 or more
|Aged under 65|
|Aged 70 or over|
|Medicare levy surcharge|
|Your income for surcharge purposes includes your:|