Private Health Insurance Rebate 2013

From 1 July 2012, an individuals entitlement to a private health insurance rebate will be income tested. These changes are for the 2012-13 financial year.

Taxpayers will not be entitled to their current rate of rebate if their income for Medicare levy surcharge purposes is either:

  • a single income of $84,001 or more
  • a combined family income of $168,001 or more.
There are also two new income thresholds where taxpayers will pay a higher rate of Medicare levy surcharge at 1.25% or 1.5% as per the following table:

Income thresholds
Singles$0 - $84,000$84,001 - $97,000$97,001 - $130,000$130,001 and above
Families*$0 - $168,000$168,001 - $194,000$194,001 - $260,000$260,001 and above
Private health insurance rebate
UnchangedTier 1Tier 2Tier 3
Aged under 6530%20%10%0%
Aged 65-6935%25%15%0%
Aged 70 or over40%30%20%0%
Medicare levy surcharge
Rates0%1%1.25%1.5%

* The families' threshold is increased by $1,500 for each dependent child after the first. Families include couples and single parent families.

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle - checklist of eTax and Assessable Income and deductions and checklist of eTax and Allowable Deductions.

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