Private Health – https://www.privatehealth.gov.au/dynamic/Search

Just FYI – while we are here – other government review sites are (and you can Google them if you lose this email):

Electricity & Gas – https://www.energymadeeasy.gov.au/

NSW Car Green slip – https://www.greenslips.nsw.gov.au/

Cheap Fuel Check – https://www.fuelcheck.nsw.gov.au/app

Find paid carparking & pay on your phone – https://parknpay.nsw.gov.au/

The government run website compares private health insurance policies. If you maintain the same cover when changing policies you don’t need to re-sit waiting periods.

Assume you and spouse both earn the same ($90/90, $140k

Say you earn $90k/$180k – 1% you’d pay $900 extra tax (each if couple)

If you earn $105k/$210k – 1.25% you’d pay $1,312.50 (each if couple)

If you earn $140k/$280k – 1.5% you pay $2,100 extra tax (each if couple)

Should I get private health insurance?
With that tax cost, to me it might make more sense to pay an extra amount to be covered for hospital cover if something happens.

i.e. Rather than pay $900 tax for nothing, pay $1700 ($800 extra) to receive private health care.

Maybe you can claim a few benefits during the year like dental (or even just have hospital cover).

Medicare Levy Surcharge is charged for any days you aren’t covered if your income is above the thresholds – so it makes sense to obtain cover as soon as possible. All in the family (including babies/children) must be covered.

So when you move in together – that is the day you want private health insurance to start – and you also want any children covered from the day they are born (note you can call the private health within a certain time period as they don’t expect you to call after the birth! – from memory it might be 60 days – however you can also cover the child by your private health policy even before they are born).

The government used to offer 30% (or even 35%/40% for senior Australians) offset on your private health insurance costs – so most people pay the lower amount to their private health fund.

Now though – if you are above the Medicare Levy Surcharge amount ($90k single and $180k couple) – you will need to pay some or all of it back on your (and your spouse’s) tax return.

On the tax return this is called Excess Private Health Entitlement (i.e. if you received $976 rebate received on your private health statement and your combined taxable income is under $180k then 0 is required to be repaid, however if your combined income is above $140k single/ $280k couple  you will need to pay the full $976 back in your return). – You can either tell your private health company your income or just pay it back on your tax return.

Regardless of not receiving the full 30% rebate/offset – it it still better to have private health insurance than have to pay 1-1.5% Medicare Levy Surcharge.

Tables and further links below for more information -but hopefully this makes a complex topic more simple to understand.

Income threshold and rates 2023–24

These income thresholds and MLS rates apply for the 2023–24 income year.

Use this information to work out which income threshold and MLS rate apply to you.

Medicare levy surcharge income, thresholds and rates

 

MLS income thresholds and rates for 2023–24

 

Income threshold and rates from 2014–15 to 2022–23

These income thresholds and MLS rates apply for income years from 2014–15 to 2022–23.

Use this information to work out which income threshold and MLS rate apply to you.

Example: Medicare levy surcharge for a single adult

In the 2022–23 income year, Tom doesn’t have the appropriate level of private patient hospital cover and is:

• 35 years old
• single without any dependants.

Tom’s taxable income is $90,000. When Tom completes his tax return, he also completes the income test section and declares total reportable fringe benefits of $27,000.

Tom’s income for MLS purposes is $117,000 ($90,000 taxable income and $27,000 total reportable fringe benefits).

Therefore, Tom is a Tier 2 income earner and the Tier 2 MLS rate that applies to him is 1.25%.

The amount of MLS is calculated on his taxable income of $90,000 and total reportable fringe benefits of $27,000.

Tom’s MLS liability for 2022–23 is $1,462.50 ($117,000 × 1.25%).

See Family and dependants for Medicare levy surcharge purposes for more information about what is considered family and dependant for the MLS.