From 1 July 2012, the private health insurance rebate that the government has paid to encourage Australians to maintain private health insurance will be means tested. This means that if you are a single person earning more than $84,000, or a family with an income of more than $168,000, you will no longer be entitled to the full 30% rebate. If you earn more than $130,000 as a single or $260,000 as a family, the rebate will disappear completely.
However, if you pay any premiums by 30 June for cover for any period after 1 July, you will still be entitled to the full rebate, without any means testing in respect of those pre-paid premiums. This also means that your premiums will be fixed for the full period of the pre-payment. Some insurers are offering pre-payment for up to 30 months. You need to check with your own insurer to see what period of pre-payment they offer. Any payment must be paid to and received by your insurer by 30 June.
For further information please contact:
Matthew Hall
Phone: + 61 2 9233 5544
Email: mdh@swaab.com.au
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.