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