Confused about health insurance and tax?

Don’t worry, we’ve got your answers right here

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Confused about health insurance and tax?

Don’t worry, we’ve got your answers right here

We make tax simples

The start of a new financial year is full of confusion. This is why we want to make it easy for you to find out how your tax return is impacted by health insurance.

Are you 31 years or older?

If you haven’t purchased private hospital insurance before 1 July following your 31st birthday, you’ll be required to pay more for your cover – but only if you get insured in the future. This extra cost is called Lifetime Health Cover (LHC) loading, which increases the cost of private hospital insurance by 2% for every year you’re not covered over the age of 31 (up to a maximum of 70%). For example, if you first take out private hospital cover when you’re 40, you’ll pay 20% more than someone who took out the same policy before they turned 31.

Does it affect your tax return?

  • LHC isn’t levied at tax time. It’s added to the cost of your premium.
  • LHC loading isn’t a claimable tax benefit. It does influence your Private Health Insurance Rebate because the amount you can claim excludes any LHC loading you paid throughout the year.

Learn more about Lifetime Health Cover Loading.

See how you’re affected by Lifetime Health Cover by using our handy calculator

Calculate your LHC


Do you earn more than $90,000?

The Medicare Levy Surcharge is a surcharge on the taxable income of individuals who earn more than $90,000 per year – as well as couples/families who earn more than $180,000 a year – who don’t have private health insurance. If you fall into this category, you’ll pay more in tax – unless you fall into one of the exemption categories.

Study up on the Medicare Levy Surcharge.

Use our handy calculator to see if you’re impacted by the Medicare Levy Surcharge

Calculate Now

Do you qualify for the rebate?

The Private Health Insurance Government Rebate is a rebate paid by the Government to help you pay for your private health insurance policy. If you hold any type of health insurance (hospital, extras, or a combined policy), you can choose to receive the rebate as part of your tax return, or in the form of a reduced premium – depending on your age, family status and income.

Read more about the Australian Government Rebate.

See if you qualify for the rebate

Base Tier Tier 1 Tier 2 Tier 3
Singles Under $90,000 $90,001-105,000 $105,001-140,000 $140,001 and over
Families* Under $180,000 $180,001-210,000 $210,001-280,000 $280,001 and over
< Age 65 25.93% 17.29% 8.64% 0%
Age 65-69 30.26% 21.61% 12.97% 0%
Age 70+ 34.58% 25.93% 17.29% 0%
Retrieved from Department of Health | Information current as of 03/04/2017
^ For families with children, thresholds increase by $1,500 for each child after the first.
Families include couples, de facto couples, and single parents.

So, what are you waiting for?

Compare Now or call 13 32 32