8/06/2012 4:20 PM
If you pre-pay your 2012/13 private health insurance premium before 30 June 2012, you may still be able to access the Government rebate. The Government currently provides a non-means tested rebate for private health insurance premiums.
The changes in the health insurance rebate reducing your rebate from 30% to 0% for families with adjusted taxable incomes over $260,000 or individuals over $130,000 on a sliding scale, will from the 1st July 2012 . We are suggesting that to take advantage of the 30% rebate that you prepay your health insurance premiums for the next year. Once your ‘adjusted taxable income’ is greater than $130,000 (or $260,000 as a family), no rebate will be available.
Your ‘adjusted taxable income’ includes the total of:
- Taxable income;
- Adjusted fringe benefits (total reportable fringe benefits x 0.535);
- Tax-free pensions or benefits;
- Target foreign income (income earned overseas that is not already included in your taxable income);
- Reportable superannuation contributions; and
- Total net investment losses.
If you are interested in this one-off savings opportunity, we suggest you contact your private health insurer to discuss the possibility of pre-paying next year’s premium. Some private health insurance funds will even allow you to pre-pay up to 18 months of premiums.
If you have any queries, or would like some further information, please do not hesitate to contact us.