Benefits of Private Health Insurance.
Avoid paying the Medicare Levy Surcharge (MLS). The MLS is a 1.5% tax on your taxable income if you earn over a certain amount and don't have private health insurance. (ATO Thresholds HERE) (Must include Hospital Cover)
Receive a private health insurance rebate (PHIR). The PHIR is a tax rebate that can help you offset the cost of your private health insurance premiums. The amount of the rebate you receive depends on your income and the level of coverage you have. (Rebates HERE)
Have more choice and control over your healthcare. With private health insurance, you can choose your own doctor, hospital, and treatment options. You may also be able to get a private room in a hospital and choose when you have surgery.
Reduce your waiting times for elective surgery. Waiting times for elective surgery in the public system can be long. With private health insurance, you may be able to get surgery sooner.
Get access to extras cover. Extras cover can help you pay for things like dental check-ups, optical items, physiotherapy, and other health services that are not covered by Medicare.
Here are some of the tax benefits that come with holding private health insurance in Australia:
The Medicare Levy Surcharge (MLS). As mentioned above, the MLS is a 2% tax on your taxable income if you earn over a certain amount and don't have private health insurance.
The private health insurance rebate (PHIR). The PHIR is a tax rebate that can help you offset the cost of your private health insurance premiums. The amount of the rebate you receive depends on your income and the level of cover you have.
The Lifetime Health Cover loading (LHC). The LHC is an additional loading that you may have to pay on your private health insurance premiums if you wait too long to take out cover. The LHC is calculated as a percentage of your premiums. (Calculator HERE)
It is important to note that the benefits of private health insurance vary depending on your individual circumstances. It is important to compare different policies and options to find the one that is right for you.
The MLS is NOT the Medicare Levy. Everybody pays the Medicare Levy except under certain circumstances. Holding Private Hospital Cover will exempt you only from the MLS.
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