[Solved] Hospital Cover with Salary Increase

Lsassafrass on 09/09/2022 - 17:56
Last edited 11/09/2022 - 13:12

Hey all,

Wondering if I'm going to get hit with a Medicare Levy Surcharge next July.

Last month, I started a new job. Prior to the job move, I had private health insurance cover for Tier 1. Due to the annual leave payout from the previous job, I'll scrape into Tier 2 this financial year.

What additional tax should I expect to pay? I'm hoping that it's not the full 1.25% despite the PHI I've already purchased.

ATO Income thresholds for MLS

Thanks for any help!

Solved (added 11 Sep 2022):

wei13 on 09/09/2022

You won't pay Medicare levy surcharge if you have held eligible hospital cover for the whole year.
However your government rebate for your private health policy may reduce, meaning at tax time you may have to repay some of the rebate you are currently receiving as a tier 1. The higher the tier you are , the less rebate (discount) you get for your private health insurance.

Also helpful

avoidfullprice on 11/09/2022

This.
OP should look at the rebate table instead
https://www.ato.gov.au/Individuals/Medicare-and-private-heal…

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Comments

  • sjj89 on 09/09/2022 - 17:57
    +2

    Call your insurer and ask them to adjust your premium

  • wei13 on 09/09/2022 - 18:12
    +3

    You won't pay Medicare levy surcharge if you have held eligible hospital cover for the whole year.

    However your government rebate for your private health policy may reduce, meaning at tax time you may have to repay some of the rebate you are currently receiving as a tier 1. The higher the tier you are , the less rebate (discount) you get for your private health insurance.

    • Drakesy on 09/09/2022 - 18:24

      The Lobbyist scum get paid no matter what :(

    • blueyez on 10/09/2022 - 10:40

      Do you have to hold hospital cover for the full financial year to avoid the surcharge?

      • wei13 on 10/09/2022 - 14:41

        If you are over the income threshold, then you will pay Medicare Levy Surcharge proportionate to the days of the year which you didn't hold an eligible private hospital policy.

        • blueyez on 10/09/2022 - 19:58

          Thanks for clarifying

    • avoidfullprice on 11/09/2022 - 00:02
      +1

      This.

      OP should look at the rebate table instead

      https://www.ato.gov.au/Individuals/Medicare-and-private-heal…

    • sassafrass on 11/09/2022 - 13:12

      Thank you for the clear explanation! Marked question as solved.

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