Hi All, my accountant has asked me to get Private Health Insurance.
Do you guys have any advice on which private health is the best for this purpose?
Best Private Health to Minimise Tax?
pixpotato on 16/12/2020 - 16:14
Last edited 16/12/2020 - 16:23 by 1 other user
Last edited 16/12/2020 - 16:23 by 1 other user
Comments
At the basic level they are just junk policies targeted at tax minimisers like yourself.
Sure you might save a thousand in tax but don't suddenly think you have awesome private health insurance cover.
Sure you might save a thousand in tax
Spend $845/yr on health insurance to save $1,000. I mean, you end up in profit, but nothing crazy
Edit someone didn't like that lol
Trying to understand this as after switching jobs I am in similar situation and will be paying medicare levy due to family income. With this cover anything which needed to be claimed, an access of $500 will apply. So this is just about saving medicare levy? Also other benefits being paying excess and getting cover.
Reason I ask, that the price for a couple comes same as what medicare levy is (accountant confirmed figures) not for this year but assuming salary remain same for next financial year.
Not sure if we can take policy separate and premium will be cheaper (checking that now)So this is just about saving medicare levy?
It will waive the Medicare Levy Surcharge, not the 2% Medicare Levy.
Edit : I meant MLS (surcharge) not the levy. Thanks for pointing out.
Ozbargain is becoming a salt mine.
Spend $845/yr (health.com.au) on health insurance to save $1,000.
For some it may not be $1000.
Some are in Tier 3 where the MLS is 1.5%.
Still I would not take those junk policies, I know I will lose money but I will use some of it.
Yep, agree with this too.
You are hit with a higher the Medicare Levi, an additional % you pay via tax by not having private health insurance.
You are better off using the levi $ for private health insurance than a levi to the government for nothing.
I can only assume your income is high enough for your accountant to make that recommendation.
Depends on your state, being Vic.
https://www.privatehealth.gov.au/
Punch in your broad details. Choose hospital cover only. Pick the policy with lowest premium
The cheapest eligible hospital cover will do.
health.com.au does have a cheap policy which covers you as a private patient in a public hospital for all procedures
I've found that top hospital and extras works for me.
I can claim enough in extras for the hospital policy to only cost about the same as a junk hospital only policy. I claim the following extras: Optical, Dental, Physio, Massage/Natural therapy, Pharmacy, Podiatry.
Yeah - I probably wouldn't use all of those services, if I didn't have top extras cover and I could probably save a bit by lowering the level of cover, but it works for me at the moment, so I thought I'd throw it out there as an option for the OP.
who you with? and which policy?
NIB. I have a grandfathered policy, but I'm sure any top hospital+extras work the same way.
Some things to consider:
There's extras cover and there's hospital cover. They are two completely different things. You can make a "profit" on extras cover fairly simply (i.e., use dental/physio/optometrist benefits and make sure they are more than your premium), but it doesn't actually count towards the requirement of private health insurance. Only hospital cover works towards that, so it's worth doing some analysis on whether to do both hospitals and extras, or just hospital cover alone.
You can take hospital cover one of two ways - as others have mentioned, go the cheapest route possible so you can pay as little as possible whilst reducing your tax requirements. Otherwise, it depends a bit on your age, your gender and your plans for future. I am a bit older, have had heart issues in the past and am fairly active in a sport that can seriously damage knees/elbows/lots of that sort of thing so I opted for cover that covered things like joint reconstruction and heart complications. I doubt I'll ever need it but it's nice to know I am covered for it if I do need it.
a sport that can seriously damage knees/elbows/lots of that sort of thing
Table tennis or ballet are my guesses
Squash! Squash is my guess.
Oh and Badminton is my 2nd guess.
BJJ
But isn't it reasonable that an accountant would give his client tax minimisation advice?
No, but the accountant will ask OP to buy an iPhone to keep the sleep doctor away.
haha, I spoke to two GPs and a physio about this, gave me donuts. At least my accountant is looking after me from a financial point of view haha, so ease up
Do you have any dependants (kids)? Last time I check HIF has the cheapest hospital cover for single or couple, but not for families.
Also check with your employer if they have a corporate deal with PHI.Nuttn! Just moi
Accident only hospital cover (basically useless but does the job for tax purposes). health.com.au has a pretty cheap version of this.