We are all aware of the Medicare Levy and the extra surcharge that you may have to pay should you not have private health insurance.
But you may not be aware that from 01 July 2012 the Medicare Levy Surcharge will not be means tests and will be charged as a percentage of your taxable income.
Unchanged Tier 1 Tier 2 Tier 3
Singles $0 – $84,000 $84,001 – $97,000 $97,001 – $130,000 $130,001 and over
Families $0 – $168,000 $168,001 – $194,000 $194,001 – $260,000 $260,001 and over
Rates 0% 1% 1.25% 1.5%
As you can see from the table above the Medicare Levy Surcharge rates lift to 1.5% if you are single and earn over $130,001. This is an extra cost of $1,950.01 per year.
If you are tossing up about getting private health insurance you shoud compare the cost of private health insurance versus the cost of the extra surcharge.
Don’t forget that if you get private health before you are 31 is that you will save on the extra loadings and the reduction of the 30% governement rebate.
You can also use the private health to gain a benefit for health products and receiving refunds or pay nothing for some services.
So it can be well worth having private health and it can also save you alot of money.
