Private Health Insurance Rebate
Do you know how your Private Health Insurance Rebate is calculated?
When the rebate was first introduced, the government contributed a flat 30% to a taxpayers health insurance premiums and the taxpayer paid the remaining 70%
Changes were then introduced in 2012 which reduced the percentage the government would contribute. The new contributed percentage is determined according to a single persons or families adjusted taxable income. This adjusted taxable income is different to a taxable income as it allows for reportable fringe benefits, investment losses and reportable superannuation contributions.
Please see http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/insurancerebate.htm for details of the income tiers and the percentage of your premium covered by the government. These change each year.
Health funds needs to be notified of correct adjusted taxable income amounts to ensure the correct amount is being contributed by the government. Any adjustments are made upon lodging the relevant years income tax return.
If you have any other questions about the private health rebate or any other tax return questions, contact one of our advisors today!