The end of the 2013 financial year may have flown past us, but there are still many individuals who have not looked into their health insurance rebates. For those Australians with private health insurance, they are able to receive a rebate from the Australian Government to help cover the cost of their premiums. This rebate is income tested and the income tiers have once again changed since the scheme came into effect in July last year.
The rebate applies to hospitals, general treatment and ambulance policies. It does not apply to overseas visitors cover. The rebate levels applicable for 1 July 2013 to 30 June 2014 are:
However many Australian’s remain complacent regarding these changes and have yet to contact their relevant health provider to advise which tier they now fall under.
Whilst it is not compulsory to contact your health insurer, you may wish to check with them as to which tier you are currently sitting in and advise that of which tier you fall into so that your rebate level can be adjusted accordingly. Otherwise if your income exceeds the appropriate threshold, you may well incur a tax liability, payable to the Australia Tax Office if you do not contact your fund.
Additionally, you may wish to claim the rebate as a lump sum by choosing to pay the full premium and then claim the rebate entitlement through your tax return. We recommend speaking to one of our accountants or financial advisors on 02 9299 7044 or via email@example.com in order to make an informed decision about a policy that is tailored to your individual circumstances.