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.
The beginning of February marks a significant yet costly time for families with children, as parents busy themselves with the purchasing of school textbooks, stationary and uniforms amongst numerous other items.
If school expenses are weighing you down, the Schoolkids Bonus can help lighten the load. It replaces the old Education Tax Refund and it is simple: there’s no need to collect receipts or claim it through your tax, this is one of the significant benefits of the Schoolkids Bonus.
Each year, eligible families and students will receive:
- $410 a year for each primary student ($205 paid in January and $205 paid in July)
- $820 a year for each secondary student ($410 paid in January and $410 paid in July).
To get the Schoolkids Bonus you need to be receiving an eligible payment from Centrelink or a Department of Veterans’ Affairs Education Allowance either for yourself or on behalf of your child on the 1 January and/or 30 June test dates and you or your child must be undertaking primary or secondary studies and under 20 years of age. If you receive an eligible payment from Centrelink, you just need to let them know:
- when you or your child starts primary school to start receiving the payment
- when you or your child changes from primary to secondary school to start receiving the secondary school payment and
- when you or your child complete secondary school to receive the final secondary school payment.
I have more than one child. Will I receive the Schoolkids Bonus for each child?
Yes, if you have more than one child in primary and/or secondary study and meet the eligibility requirements, you will receive the Schoolkids Bonus for each child in primary and/or secondary study. For example, if you have a child in primary school and a child in secondary school in January you will receive $205 for your child in primary school and $410 for your child in secondary school. That’s a total of $615 to help with back-to-school costs for your children’s education.
When will I receive it?
Payments are made in January and July every year unless you claim your Family Tax Benefit Part A as a lump sum. You must be receiving one of the eligible payments on 1 January to receive the January payment. Similarly, you must be receiving one of the eligible payments on 30 June to receive the July payment. If you have deferred your Family Tax Benefit Part A, you will still receive the Schoolkids Bonus.
The above information has been obtained from the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs. For further information please visit http://www.fahcsia.gov.au/our-responsibilities/families-and-children/benefits-payments/schoolkids-bonus
Last month we ran a Blog Competition to celebrate the creation of our blog.
Bill Ellerton won $200 worth of wine from Galli Estate, just by signing up to receive our blogs and liking our Facebook page.
Congratulations again Bill, from all the team at McMahon Osborne Group.
Congratulations to the team at McMahon Osborne Group, winners of the Industry Education Engagement Award!
On Thursday 13th September, Hume City held it’s annual Hume Business Awards event at the Park Royal Hotel at Melbourne Airport. At this event, the McMahon Osborne Group was nominated in the category of Industry Education Engagement and won.
We’d like to give a big thank you to the Economic Development division of the Hume City Council who put the nomination forward.