Tax time’s just around the corner and, if you turned 31 this financial year or if your earnings are over $90,000 per year, you may be financially impacted if you don’t have health insurance. Here’s why.
Turned 31 recently?
You’ve reached a critical age for private hospital insurance. The Australian Government applies a levy – called Lifetime Health Cover (LHC) loading - on top of your premium if you put off getting private hospital insurance beyond age 30. This loading increases hospital premiums by 2% for each year you are over 30 when you join. For example, if you join when you’re 40, you’ll pay a 20% loading on your hospital premium. If you wait until you’re 50, you could pay 40% more, and so on, up to a maximum of 70%. To avoid paying a higher premium, you’d need to get hospital cover by 30 June following your 31st birthday.
Growing your income?
As your income increases, you may need to pay an extra Medicare levy (on top of the 2% you already pay) if you don’t have private hospital cover. How much extra depends on your income and personal circumstances, as shown below.
Medicare Levy Surcharge
Getting hospital cover will save you from paying this extra tax – and you may even qualify for a government rebate on your premiums to help you pay for it. Right now’s a great time to take out private health insurance with TUH – the health fund for the education community and their families. We’re 100% member-owned and all about your health, not shareholders’ wealth. For information about what you can claim this year, read the ATO ‘s guide for teachers and education professionals at ato.gov.au/teacher21.
We have a great range of hospital covers, so you can pick the one that suits your lifestyle and budget.With extras you can claim for services such as dental, optical, physio and massage. We have a great range of covers, so you can pick the one that suits your lifestyle and budget.
(*) Prices include direct debit discount. (R) Restrictions apply. Sub limits may apply on extras products, click on for more details. Set extras benefits apply per service and vary depending on cover. Waiting periods may apply. Your rates may differ based on your Lifetime Health Cover loading (LHC). Actual rates may differ from those stated by up to 5c due to rounding increments.
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Unfortunately, we don’t have a level of cover that matches the criteria you have selected. If you would like to discuss this further, please contact us on 1300 360 701 or via email at firstname.lastname@example.org.