Following the decision by the government to means-test the health insurance rebate, how much you earn impacts how much you get back as part of the rebate. Some people won’t receive any rebate at all.
Those on high salaries are hit the hardest, with singles on more than $140,000 and families on more than $280,000 not receiving any rebate at all.
In an attempt to stop some of people affected dropping their Hospital cover, the Medicare Levy Surcharge is payable for people who bring home more than a specified amount. Singles earning more than $90,000 and households on more than $180,000 must pay at least 1 per cent on top of the Medicare levy if they do not have eligible Hospital cover.
Here is a table that will help you figure out how much you will be impacted.
There is a silver lining in this dark cloud, however.
Some health insurance providers are allowing members to pre-pay their premiums in advance, thereby locking in today’s prices for another year.
Paying your premiums now means you can beat the annual price hikes.
For more information on how to take advantage of this, give us a call on 1300 64 33 55.