Private Health Insurance just drop a “bomb” to Members. Sounds like a “bomb” to me. Pay 18Month upfront…

I called my Private Health Insurance to find out about this 18 Month paid in advance what benefit will bring to me.

As I am paying joint with my husband, my pay out is close to $7000,00 for 18 Month and I would get $2000,00 tax rebate.

But after 18 Month I go back to “0” ZERO tax rebate.

Hello! Where is the benefit? Where is the incentive?

Called my tax account person to advise me and we arrive at the same conclusion: no benefit to the Member.

Pay or not to pay, that is the question.

Can anyone explain better to my readers?

Am I “naive” again as I was told when I said the Super Fund was a joke?

Went on the web to keep myself more informed and here are the answers:

Changes to the Private Health Insurance Rebate from 1 July

From 1 July 2012, the Australian Government will introduce three new Private Health Insurance Incentive Tiers:

  • If you are a single earning $84 000 or less, or a family earning $168 000 or less, you will get a rebate of:
    • 30 per cent, if the policy members are under 65 years
    • 35 per cent, if one or more policy members is between 65 and 69 years
    • 40 per cent, if one or more policy members are 70 years or older.
  • If you are a single earning between $84 001 and $97 000, or a family earning between $168 001 and $194 000 you will get a rebate of:
    • 20 per cent, if the policy members are under 65 years
    • 25 per cent, if one or more policy members is between 65 and 69 years
    • 30 per cent, if one or more policy members are 70 years or older.
  • If you are a single earning between $97 001 and $130 000, or a family earning between $194 001 and $260 000 you will get a rebate of:
    • 10 per cent, if the policy members are under 65 years
    • 15 per cent, if one or more policy members is between 65 and 69 years
    • 20 per cent, if one or more policy members are 70 years or older.
  • If you are a single earning over $130 000 or a family earning over $260 000 you will not get a rebate regardless of age.

Note: the thresholds are increased each year, based on growth in Average Weekly Ordinary Time Earnings. Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1500 for each child after the first.

Singles earning $84 000 or less, and families earning $168 000 or less, will continue to get the existing 30, 35 and 40 per cent rebate, depending on their age.

To find out more visit: health.gov.au[2]