What are these changes to the Private Health Insurance thing that you need to do something by June 30??

I tried to Google it, from what I can tell if you earn over a certain amount, and have private health insurance, you get less of a rebate, or if you dont you have to pay more medicare levy, or if you get it and you are over 30 its going to cost more… or something.

Can someone explain it to me simply? My dad is stressing out asking if I can help sign him up to BUPA before June 30 but I wanna make sure its the right move.

Dads 60, earns 90k
Mums 50, earns 50k
3 kids living at home aged 9, 19 and 24
No ones on private health except for me on HBFs $4.10pw essentials cover

So my questions are:
What is the current state of affairs with Private Health Insurance vs Medicare. If you dont have PHI you pay medicare levy which is like 1% of your income right?, and if you do have PHI then you don't pay the medicare levy? What's this thing about a rebate if you have PHI, do you get more money back, or tax benefit or what??

What are the changes coming June 30, and how do they affect my parents? What do they mean PHI will cost more if you join up over 30 years old?

Are my parents better of staying off PHI, or should they join up before June 30?

Can it be any PHI like my HBF essentials or does it need to include hospital cover?

What's a good one for my parents to join up with? Are they on the right track with BUPA?

Bonus Q: When are you no longer considered a dependent? When you move out of home, when you turn 18? 21? When you pay board?

Appreciate the input from you 'professionals' ;)

Comments

  • Quick answer

    • Medicare Levy 1.5% applies to most taxpayers AT0

    • Medicare Surcharge 0 to 1.5% on top of Medicare Levy depending on income (as defined) ATO

    Dad + Mum income $140k is below family threshold of $168k, so no extra surcharge.

    No need to stress.

    • Cheers this pretty much tells me what I need to know :)

    • the family threshold is $180k for max rebate…

      • the family threshold is $180k for max rebateā€¦

        You are referring to Private Health Insurance Rebate.
        This is a payment the Government pays to help cover the costs of premiums.

        2013-2014 $176,000 or less
        2013-2015 $180,000 or less

        ATO

        You are a little bit late to the party.
        This thread is 8 months old. OP wanted info before 30/06/2014.

        • you shouldn't rush these things..haha.

          The Government Rebate is also the same threshold as MLS, yes. The reason I commented was that they mentioned 168k, which isn't a threshold.

  • Try http://www.privatehealth.gov.au

    I'll try to quickly answer some of your questions.

    Everyone pays Medicare levy.
    High earners also pay a Medicare Levy surcharge. Based on the income figures you provided your parents would not have to pay the levy if they didn't have private health cover.

    There is no tax benefit to having private health cover unless you would be paying the Medicare levy surcharge.

    If you don't have PHI by 1 July following your 31st birthday you get charged a lifetime health cover loading for the next 10 years.

    As for your parents situation, that's a question only they can answer. Like any other insurance, with the exception of the extras coverage, it's there just in case. Australia has a good public health system but if you need a knee operation or something like that then without PHI you risk being on a waiting list for a long time.

    PHI also generally provides ambulance cover.

    I believe some PHI provides cover for dependants up to 21, some may do longer, I'm not sure.

    Best of luck.

    • Thanks for the info

  • Off-topic: your dad had a kid at 51? There is hope for me yet! (an old [guy] maid)

    On-topic: yikes, I have stubbornly refused to get any PHI because I believe in 'user pays' (haven't been to the doctor in 22 years) and (foolishly?) hope that my earning % outstrips the lifetime health cover loading.

    • +1

      Haha yea he wasn't exactly… planned.

      • +1

        Haha..should've been an Ozbargainer and taken advantage of all the free condom samples.

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