Skip to Content

2009-10 Budget Annoucements on Private Health Insurance

15 May 2009 - 5:20pm

In the 2009-10 Budget, the Australian Government proposed changes to both the Private Health Insurance Rebate and the Medicare Levy Surcharge (MLS) tax rates.

The changes are not proposed to take effect until July 2010 and require senate approval to become legislation.   The Federal Opposition has advised that they will not support the proposed changes.

What are the proposed changes?

The Government has proposed to means test the Federal Government Rebate on private health insurance and has proposed changes to the thresholds for singles, couples and family income levels.

Proposed Rebate changes:

Singles Earning Couples Earning Proposed Rebate Entitlement
Up to $75,000 Up to $150,000 30% of Premium
$75,001 to $90,000 $150,001 to $180,000 20% of Premium
$90,001 to $120,000 $180,001 to $240,000 10% of Premium
Over $120,000 Over $240,000 Rebate is abolished

 

 

 

 

The rebate drops in equivalent stages for people 65 years and over who now receive a 35% rebate and people over 70 years of age who now receive 40% rebate.

Proposed Medicare Levy Surcharge changes:

Singles Earning Couples Earning Proposed Rebate Entitlement
Up to $75,000 Up to $150,000 No MLS tax payable
$75,001 to $90,000 $150,001 to $180,000 1% MLS tax
$90,001 to $120,000 $180,001 to $240,000 1.25% MLS tax
Over $120,000 Over $240,000 1.5% MLS tax

 

 

HICA clients can rest assured that HICA will keep them informed of any changes to legislation that may affect their health insurance cover or premiums.