Yahoo Finance $770 cash boost coming for millions of Aussies nationwide from July 1
New private health insurance rebate thresholds are coming into effect from July 1, boosting savings for some policyholders.
Aussies will save up to $770 a year under changes to the private health insurance rebate coming into effect from July 1. More than half of Australians - about 13.6 million people - have private health insurance.
Most Aussies with private health insurance currently receive a rebate from the government to help cover the cost of their premiums. This rebate is calculated based on how much customers earn.
Singles can currently earn up to $93,000 a year to qualify for the highest rebate of 24.608 per cent, however that threshold will be increased to $97,000 from July 1.
RELATED
Medibank, ahm customers set for $100 cash boost as health fund upholds COVID promise
Major Medicare change making health cheaper for 1.2 million Australians
Families can currently earn up to $186,000 a year to get the highest cash back, but this will be raised to $194,000 from July 1.
The rebate then decreases as you earn more. For singles, the maximum you can earn to get a rebate is currently $144,000, but this will be increasing to $151,000. For families, it is currently $288,000 and will increase to $302,000. There are also higher rebates available to those aged 65 and over.
Under the changes, families with a Gold health cover policy who move up to the maximum 24.608 per cent rebate could save around $770 a year, while singles could pocket an extra $385 a year.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
Policyholders can claim the rebate as a premium reduction through their health insurer meaning they will pay less money upfront, or as a tax offset when lodging their annual tax return.
You can find out more about the different rebate tiers and the changes here.
Tax penalties also changing
Thresholds for the Medical Levy Surcharge (MLS) will also be changing from July 1. This is a penalty you have to pay if you earn over a certain amount and don’t have private health insurance. It is up to 1.5 per cent of your income.
Currently, singles who earn over $93,000 and families who earn over $186,000 a year and don’t have health insurance have to pay the surcharge. These thresholds will also be increasing to $97,000 and $194,000 next month.
Bupa health insurance managing director Chris Caroll said the government’s tax concessions helped support our mixed public and private health system.
“Our public hospitals remain under pressure, and we all have a role to play in helping keep our world-leading health system strong to ensure patients can access care when they need it,” Carroll said.
“In some cases, having the most basic hospital cover could cost less than paying the MLS if you don’t have private health insurance – and we know most families would welcome savings during the current cost-of-living challenges Australians are facing.”
Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.
