PHI 71/14

This circular issued by the Private Health Insurance Branch contains information on Private Health Insurance Amendment ACT (NO. 1) 2014

Page last updated: 03 December 2014

Printable version of PHI 71/14 (PDF 141 KB
3 December 2014

Private Health Insurance Amendment ACT (NO. 1) 2014

Legislative Amendments

As part of the 2014-15 Budget, the Government announced that the income thresholds for the Australian Government Rebate on private health insurance (the Rebate) and the Medicare levy surcharge (MLS) would be paused at the 2014-15 rates for a period of three years, from 1 July 2015 until on 30 June 2018.
On 18 November 2014 the Private Health Insurance Amendment Bill (No. 1) 2014 passed both houses of Parliament. On 26 November 2014 the Private Health Insurance Amendment Act (No. 1) 2014 received Royal Assent. This Act amends the Private Health Insurance Act 2007 to pause the indexation arrangements for the income thresholds which determine the tiers for the Rebate and the MLS at the 2014-15 rates for three years. The Act can be found on the Australian Government ComLaw website.

For the period of 1 July 2015 to 30 June 2018 the income tiers will be paused at the 2014-15 threshold levels as follows:
Income
Unchanged
Tier 1
Tier 2
Tier 3

Singles


Families

≤ $90,000


≤ $180,000

$90,001-105,000


$180,001-210,000

$105,001-140,000


$210,001-280,000

≥ $140,001


≥ $280,001

Medicare Levy Surcharge

All ages
0.0%
1.0%
1.25%
1.5%
The Rebate will continue to be adjusted annually on 1 April based on the Rebate Adjustment Factor.

The following table shows the Rebate levels for the period 1 July 2014 to 31 March 2015:
Unchanged
Tier 1
Tier 2
Tier 3

Singles


Families

≤ $90,000


≤ $180,000

$90,001-105,000


$180,001-210,000

$105,001-140,000


$210,001-280,000

≥ $140,001


≥ $280,001

Rebate – 1 July 2014 to 31 March 2015

< Age 65
29.040%
19.360%
9.680%
0%

Age 65-69
33.880%
24.200%
14.520%
0%

Age 70+
38.720%
29.040%
19.360%
0%
Note: The Rebate levels change annually from 1 April, based on the Rebate Adjustment Factor. The Lifetime Health Cover component of a premium is not eligible for the Rebate.

Enquiries by insurers on the claiming of the Rebate should be referred to the Department of Human Services on 1300 554 463.

Enquiries by insurers on the MLS should be referred to the ATO helpline on 13 2861.

If you require further information please telephone: (02) 6289 9853/24 hr answering machine or email the enquiry to Private Health Insurance Branch.

For more information visit 2014 Private Health Insurance (PHI) Circulars.

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