Private Health Insurance Rebate Changes

Pre-pay your health insurance premiums before June 30.

You may be aware that the Government has passed legislation that will reduce or remove the 30% rebate that until now has been available to everyone with Private Health Insurance.

This will affect single people earning more than $84,001 and couples or families earning more than $168,001. The current subsidy will reduce from 30% to zero based on a sliding scale.  At the same time penalties for not having hospital cover are being increased by up to 50%. Click here for details.

You Can Delay the Impact of the Change and Save $500 – $1500

The ATO has recently advised that any premiums paid in advance of 30 June  2012 will retain the 30% rebate for the period that the payment covers. Most health funds have advised that they will accept up to 12 months of pre-paid premiums.

Depending on your income, such a pre-payment will save you up to 30%. For many families this will amount to a saving of $1500.