Changes to health
<< Back to Budget 09 introduction
1. Private Health Insurance Rebate
- Currently, the 30% rebate is not means tested.
- From 1 July 2010, the Government proposes to introduce a three tiered approach to determine the amount of private health insurance rebate payable to individuals.
- Income above the upper threshold will result in a complete loss of the private health insurance rebate.
- Age will also be a factor in determining the amount of rebate received.
What this means:
- Current rebates will continue to apply for singles earning under $75,000 and families under $150,000.
- Higher income earners will pay more for cover due to the loss of rebate, but also a higher Medicare levy surcharge if they choose not to have cover.
- The current practice of claiming the rebate via lower premiums may become unworkable once the Tiers arein place. This may lead to the rebate being claimed via a tax return.
2. Medicare Levy Low Income Thresholds
The new Medicare Levy thresholds applicable for the 2008/09 years are $17,794 for singles (previously $17,309) and $30,025 for families (previously $29,207). Each dependent child or student increases the threshold by $2,757.
Pensioner low income threshold has been increased to $25,299 for the 2008/09 year. Thus pensioners will not pay the levy when they have no income tax liability.
 Superannuation
Pension
Tax
|
