FAQs about Tax

Why do I have different benefit codes?
Your rebate is calculated with two rebate percentages for the 2019/2020 tax year. One runs from from 1 July 2019 to 31 March 2020 and the other runs from 1 April 2020 to 30 June 2020.

How does Private Health Insurance affect my tax?

Not holding private hospital cover can (in specific circumstances) have an effect on your tax and the amount you pay to support our public healthcare system. Whilst we all pay 2% out of our incomes (except for low income earners and pensioners) as part of the Medicare Levy, if you’re earning above a certain amount and don’t currently hold hospital cover, you may be getting charged a higher percentage out of your annual income as part of the Medicare Levy Surcharge.

MLS Tiers and threshold:

Base Tier

Tier 1

Tier 2

Tier 3

Single threshold

$90,000 or less

$90,001 to $105,000

$105,001 to $140,000

$140,001 or more

Family Threshold

$180,000 or less

$180,001 to $210,000

$210,001 to $280,000

$280,001 or more

Medicare Levy Surcharge

0%

1%

1.25%

1.5%


Ummm....why aren’t my children listed?

Sorry kids – it’s adults only round here. Your children are deemed as dependants and even though they might be over 18, they don’t need to be on your statement.

My former partner is on there! How did this happen?

If your partner was covered on the policy at the time a premium payment was made, they’ll be listed under ‘other adult beneficiaries’. The statement issued will detail their share of premiums eligible for rebate and the rebate claimed only.
Although their statement is linked to your policy profile online, don't stress! They probably don't need it as the information is already with the tax office. 

What if I haven't been claiming my rebate?

If you don’t receive the rebate in the form of a reduced premium, you’ll receive your full entitlement back when you lodge a tax return even though you don’t have a tax liability.

Can I receive the rebate as a reduced premium?

You certainly can! Get in touch, and we’ll sort that out for you. 

I have an OVHC policy, where’s my tax statement?

If you are an overseas visitor who is not eligible for Medicare, you are not entitled to any private health insurance rebate. As OVHC policy holders are not eligible to claim the Australian Government Rebate on their policy, no tax statement is required.

I've suspended my policy due to coronavirus. How does this affect my tax statement?

Whilst a policy is suspended, you are not exempt from paying the Medicare Levy Surcharge during the suspension period. To avoid the MLS, you need to hold active cover for 365 days of the financial year. Remember, this is only for high income earners so it doesn't apply to everyone.

Why does my statement show less than 365 days of cover?

If at any time during the financial year you have suspended your policy, you will see that the ‘number of days the policy provided the appropriate level of private patient hospital cover’ will be less than 365 days. This is the number of days your policy provided you with an appropriate level of private hospital insurance cover. When a policy is suspended, the duration of suspension does not count towards the total days of cover. The Medicare levy surcharge may apply if you suspended during this financial year, and earn above a certain amount. To learn more, click here

I need more help.

That's what we're here for, get in touch and we'll work it out.

Otherwise, the ATO has some helpful articles if you're up for a little further reading.