Each year your health fund will send you a copy of your Private Health Insurance (PHI) tax statement. You will need this to complete your tax return if you are claiming the Australian Government Rebate as part of your tax return. The statement provides proof that you have held an appropriate level of private hospital cover for all or part of the year and exempts you from paying the Medicare Levy Surcharge (MLS).
If you are not already claiming the rebate upfront as a reduced premium, you may be able to claim it when you lodge your tax return. The rebate applies to hospital, general treatment and ambulance policies purchased through a registered health fund. It does not generally apply to overseas visitors cover. To calculate your rebate entitlements click on the Government Rebate Calculator.
If you or your family’s taxable income will increase in the next financial year and this affects the level of Government rebate you will receive on your private health insurance, you could consider making an annual or higher payment if your health fund allows prior to 30 June. By doing so you will be able to claim the higher rebate level prior to your income increase as you will have no health insurance payments in the next financial year.
You will still avoid the MLS for this period provided your policy includes suitable hospital cover. Please note that some health funds may require a few days to process your payment so don’t leave it to the last minute! Call HICA on 1300 44 2201 to discuss.
You have two options for claiming your rebate:
If you receive your rebate as a reduced premium through your health fund, they will ask you to nominate the tier you fall under to avoid any additional tax liabilities. Alternatively you can fill out the Rebate Tier form.
Whilst LHC does not affect your tax it can affect your premiums! LHC is a government initiative designed to encourage people to take out hospital insurance earlier in life and to maintain their cover. If you don’t have hospital cover with an Australian registered health fund by 1 July following your 31st birthday, you will pay a 2% loading on top of your premium for every year you are aged over 30. The LHC Calculator will help you to determine if you’re required to pay the LHC loading.
Now is the time to maximise your benefits and minimise the penalties around Private Health Insurance so Call HICA on 1300 44 2201 to discuss your personal requirements or email us at email@example.com.