Private Health Insurance

Magnate on 06/03/2013 - 23:21

Guys,

After some advice here.

Currently my wife and I are receiving the 30% rebate on private health insurance. I'm fortunate enough to have just taken a well paying job (I work stupid hours in the arse end of our wonderful country, but get rewarded for it). This means that next year my wife and I will have a combined income exceeding the income threshold for the full rebate and will lose some of it.

I'm looking at paying 18 months of insurance upfront prior to Jun 30, just like everyone did last year. Will this work (will I still be elegible for the rebate?).

I've spoken to 2 separate people at the ATO, who don't seem to understand the question!

Cheers

Financial

Comments

  • sloshie on 07/03/2013 - 00:44

    I don't think prepaying would achieve anything now. Means testing of the rebate was put in place last year, and everyone rushed to prepay the premiums as the means testing applied to premiums paid on or after 1 July 2012.

  • cloudy on 07/03/2013 - 08:20

    I like it how u assume the ato should know about private health insurance stuff, why didn't u ask someone working in phi instead? Better yet, someone who designed the policy?

    • Magnate on 07/03/2013 - 23:18

      So are you suggesting I give Wayne Swan a call? Asking the health insurers hasn't helped. Seems no-one has any idea. Can't be that complicated can it….!

      • cloudy on 18/03/2013 - 10:18

        well the Goose is pretty damn stupid if u ask me. But i did suggest calling the private health insurance and asking them.

  • nerd1 on 08/03/2013 - 00:49

    logically wouldn't they still work out how much it would've costed you annually? and decide if you are still eligible for the rebate or not?

    … so what is the thresh hold before you loose it?

  • kanad on 11/03/2013 - 00:09

    It wouldn't work. You are thinking about pre-paying knowing that you haven't reached the income limit yet and get 30% rebate. But it doesn't matter as when you do the tax return ATO would know that you have reached the threshold and do not qualify for 30% rebate and you would have to payback to them the difference.

    • Magnate on 12/03/2013 - 10:04

      To clarify, we will be earning less than the threshold ($150k) this financial year (12-13), but over it in subsequent financial years.

  • Geewhizz on 13/03/2013 - 07:41

    When you fill in your tax return, the question comes up, "do you have private health insurance?"

    They will calculate your eligibility, so if you've gotten a rebate to which you're not entitled, you will incur a debt.

    http://www.privatehealth.gov.au/healthinsurance/incentivessu…

    If you nominate a tier that results in a higher rebate than your income entitles you to, you will incur a tax liability through your tax return at the end of the financial year. This means you could have a tax debt. There are no additional penalties for estimating incorrectly.

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