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Private Health Insurance

Private Health Insurance


Many people don’t realise that they can enjoy the benefits of private health insurance for the same price or less then they have to pay in tax for not having private hospital cover.

The Federal Government wants to relieve the strain on the public health system by encouraging more people to take out private health insurance. That’s why they have introduced incentives and penalties for people that do not have private hospital cover.

Find out how they could impact you below:stethescope-with-apple

  • Private Health Insurance Rebate:

When you take out private health insurance, you may receive a government rebate to help with the cost of your cover. The amount you get back depends on how much you earn – if you’re single and earning under $90,000 or a family earning under $180,000 per year, the government will give you back 26.79% of your premium in the form of a tax rebate. Most people choose for their rebate to be deducted from their annual health insurance premium; however others prefer to have it factored into their annual tax refund.

  • Medicare Levy Surcharge:

The Medicare Levy Surcharge (MLS) applies to singles who have a taxable income of over $90,000 and couples or families who have a combined income of more than $180,000 and do not have private hospital cover. People that earn over these thresholds pay a penalty for not having private hospital cover. The amount of ‘levy’ they pay is worked out as a percentage of their taxable income – starting at $900 a year. Good news, by taking out private hospital cover, you can avoid paying this levy altogether!

  • Lifetime Health Cover:

Lifetime Health Cover (LHC) is designed to encourage people to take out private hospital cover early in life and to maintain their insurance. The basic idea behind LHC is that if you take out private hospital cover later in life, then you are penalised and you have to pay higher premiums. LHC is not based on how much you earn, you will have to pay it if you do not have private hospital cover by 1 July after their 31st birthday. If you’re approaching 31 and haven’t yet taken out private health insurance, then now is the time to do it as you’ll soon be hit with a 2% loading on your health fund premium each year you didn’t have appropriate private cover. This means, if you decide to take out private health insurance when you’re 40 years old, then you’ll have to pay 20% more than someone that took out insurance when they were aged 30.

If your still not sure about how all these things apply to you, please give your local McFillin & Partner’s Advisor a call on (07) 3263 7030 or email and we’d be more then happy to discuss with you.





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