Private health insurance rebate
– A member of a private health insurance fund?
At a glance:
– Taxpayers may be eligible for the private health insurance (PHI) rebate if certain conditions are met.
– Consider how the Private Health Insurance rebate system will affect the cost of your insurance premiums and your tax liabilities.
– Contact us if you require any clarification or advice. Private health insurance rebateThe PHI rebate is an amount the Government contributes towards the cost of private health insurance premiums. The PHI rebate can be received through:
- A reduction in the cost of PHI premiums; or
- A refundable tax offset when an individual’s tax return is lodged.
To be eligible for the PHI rebate, an individual must:
- Have a complying PHI policy with an Australian registered health insurer;
- Be eligible for Medicare;
- Be a PHI incentive beneficiary; and
- Meet the income threshold.
Operating under the three-tier system, the percentages of PHI rebate vary among taxpayers depending on their ages, income levels and family status. PHI rebate percentages for 2013/14 income year can be accessed here.
From April 1, 2014 the rebate percentage will be adjusted each year by the rebate adjustment factor. For example, an individual in Tier 1 will receive a 20% reduction on premiums paid prior to April 1, 2014 but will receive only 19.36% rebate on premiums paid after March 31, 2014.
The family income threshold in each tier increases by $1,500 for each Medicare levy surcharge dependent child after the first child.
Remember: – The maximum rebate may be claimed automatically by an individual’s PHI but will be adjusted according to personal circumstances and income in an individual’s tax return. This article was published on 30/05/2014 and is current as at that date