Charter - Private Health Insurance Rebates

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Home Page > Services Offered > Insurance > Private Health Insurance Rebates

Private Health Insurance Rebates

Since 1 January 1999, individuals have been entitled to a tax rebate if they hold private health insurance that provides hospital or ancillary cover, or both. This tax offset is generally equal to 30 per cent of the cost of the premiums of the private health insurance and is not means tested.

A person can choose to receive a direct payment of this rebate upon completing their Australian Tax Return or they can choose to have their premiums reduced instead of claiming a tax offset.

Medicare Levy Surcharge for High Income Earners

Since 1 July 1997, higher income individuals and families who do not have private patient hospital insurance have had to pay an extra 1% of their taxable income for the Medicare levy surcharge. This is in addition to the normal 1.5% Medicare Levy.

The Medicare Levy Surcharge is payable if a person does not have private patient hospital insurance and they are:

a single person with a taxable income greater than $50000; or
a family with a combined taxable income greater than $100000 (the family income threshold increases by $1500 for each dependent child after the first).

The type of private patient hospital insurance must at least cover the fees and charges in respect of a stay in hospital. Ancillary cover does not constitute private patient hospital insurance.

Charter Financial Planning Limited ABN 35 002 976 294 AFS License No. 234665
Registered Office: AXA Australia Centre, Level 3 750 Collins Street, Melbourne, Vic 3000