Do you think you are getting the most out on your tax refund? Know this: majority of people do not even realise that you can enjoy private hospital coverage benefits for the same amount, even less, and that you are actually required to pay the government additional taxes if you do not have private health insurance.
Rebates with Private Health Insurance
Bountify, a company that helps people look for better utility deals and insurance, says that the government will provide you rebate to aid paying for your health insurance. The rebate will be dependent on your income if you are single and have an income of below $90,000 annually.
If you have a family with a net income of below $180,000 annually, you can get a tax 27.82% rebate. You can either use the rebate for covering your health insurance premium or factored into your yearly tax refund.
LHC or Lifetime Health Cover
The government designed LHC to encourage people to get private health insurance while they are younger. This is not dependent on your net income and you will have to pay for it if you do not have private health insurance by the 1st of July after your 31st birthday. However, people who file later than their 31st birthday will be penalised and charged higher premiums.
If you are nearing your 31st birthday and do not have the optimal health insurance, do it now. You will receive a two percent loading on your premium every year that you do not have private health insurance.
MLS or Medicare Levy Surcharge
This is for uninsured singles with a taxable income of more than $90,000 annually and families or couples with a combined taxable income of over $180,000 annually. If you are one of the above, you will be penalised if you do not have private coverage. The levy you have to pay will be dependent on your income and starts at $900 yearly.
Remember, all these penalty fees or levies are avoidable by having the best health insurance for you. In the case of the LHC, you should do it sooner rather than later.