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 | |
Singles |
$84,000 or less |
$84,001-97,000 |
$97,001-130,000 |
$130,001 or more |
Families* |
$168,000 or less |
$168,001-194,000 |
$194,001-260,000 |
$260,001 or more |
Rebate | ||||
Aged under 65 |
30% |
20% |
10% |
0% |
Aged 65-69 |
35% |
25% |
15% |
0% |
Aged 70 or over |
40% |
30% |
20% |
0% |
Medicare levy surcharge | ||||
Rate |
0.0% |
1.0% |
1.25% |
1.5% |
Your income for surcharge purposes includes your:
|