Private Health Insurance in Australia - Do you need it?
In Australia we are so lucky to have a fantastic public medical scheme in place that covers most medical costs and treatments. Medicare will even cover those emergencies where you end up in a trip to the hospital. Even better news for Queensland residents as our trips in the ambulance is covered through the state government.
For high income earners the Medicare scheme can come at a cost, that shows in your yearly tax return. This applies to individuals earn over $90k, or $180k as a family. This is called the Medicare Levy Surcharge. If you do not have the appropriate level of private health insurance the surcharge starts at 1% to 1.5% based on your income. This is an initiative to move people that can afford private health off the Medicare scheme.
For the over 30's that do not have private health insurance there is a 2% loading added to new policies. This is called the Lifetime Health Cover and is another incentive to encourage people to purchase and continue private health insurance earlier in life. If you do not take out a policy by the time your are 31 the 2% loading will apply every year you do not purchase private health insurance.
For more information or questions contact The Money Edge or visit https://www.ato.gov.au/Individuals/Medicare-levy/Private-health-insurance-rebate/Lifetime-health-cover/.
The Money Edge | Bundaberg