3 tax benefits of private health cover
Lower your tax bill by securing great health cover? Yes, it’s possible.
The end of the financial year is a great time to re-set your finances and streamline your health cover all at once. Statistics show that 1 in 5 Australians don’t know what they’re paying each month for health insurance.* That translates to over 2 million Aussies who aren’t making an informed decision on their health cover each year.
If you’re interested in finding great value coverage with no hidden costs, take a few minutes to compare policies at HealthInsuranceComparison.com.au. If you do it before 1 July, you could lock in some tax benefits as well as cash savings.
Here’s How You Do It:
Step 1: Select your current life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.
Over 1.8 million Australians have visited the online service to find affordable health cover, citing its ease of use and excellent customer service as some of the benefits. What’s most important is that you can get a clear picture of cost, so you know you’re getting a great deal.
Tax time is a great opportunity to switch to cheaper health cover and avoid paying extra taxes. Here are some of the ways health cover can help you lower your end of financial year costs.
- Government Rebate
To encourage more people to take up private cover, the government offers an income-based rebate on private health insurance. In order to be eligible, you must:
Be an Australian citizen or permanent resident with a full Medicare card, and
- Have taken out private health insurance with a registered fund
The amount of rebate you receive will depend on your income and number of dependents. You can opt to claim your rebate straightaway and reduce your premium, or you can claim it as part of your tax return.
- Medicare Levy Surcharge (MLS)
Australian taxpayers who earn over $90,000 per year are penalised for not having private hospital cover. A sliding-scale tax of 1 to 1.5 percent is applied to these high income earners.
For example, if you earn $100,000 per year and don’t have hospital cover, you are liable to pay a 1 percent surcharge, or $1000. If you can find hospital cover for less than that, having private cover is actually saving you money, not to mention the extensive benefits that come with being covered.
- Lifetime Health Cover (LHC)
The earlier you get private health cover, the more you could save. LHC is a loading fee on top of your premium that kicks in after you turn 31 and increases each year. Talk to an insurance advisor to find out how purchasing health cover now could help you save over time.
Find out once and for all if you’re overpaying on your health cover by comparing policies with HealthInsuranceComparison.com.au. Switch to more affordable cover before the end of the financial year and you could even lower your tax bill.
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.