Singles earning more than $129,001 and families earning more than $258,001 will lose access to their private health insurance rebate from the 2012-2013 financial year onwards, under a means test that recently secured passage through the House of Representatives and which will be effective on July 1, 2012.
The measures- which still have to pass the Senate, expected to be a formality- also mean the Medicare surcharge for the groups above will increase from 1% to 1.5% if they do not take out private health insurance. That translates into $1,935 p/a for high earning singles and $3,870 pa for high earning families.
At present, almost anyone aged less than 65 years old, regardless of how much they earn, can get a 30% refund from the Federal Government for the cost of their private health insurance. Those aged between 65 and 69 years old can receive a 35% refund and those aged over 70 years old can get 40% back.
The income test is based on the total sum of the taxable income, reportable fringe benefits, reportable super contributions and total net investment losses, less other taxed elements depending on a person’s age and circumstances.
Private Health Insurance Tiers for 2012-2013.