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' ;)
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.