Home > For Consumers > Public and private healthcare > Private health insurance

Private health insurance

Private Health Insurance Capaign Brochure

Medicare levy surcharge changes

Printable version of the Private health insurance campaign brochure (PDF 170 KB)

The Medicare levy surcharge is currently (2011-12 financial year) paid by people who earn more than $80,000 (single) or $160,000 (family) and don't have private health insurance hospital cover.

From July 1 2012, the Medicare levy surcharge income test will change.

If you or your family don't have hospital cover, or you choose not to maintain you cover, you may have to pay the Medicare levy surcharge based on the new income test.

Income

	No change	Tier 1	Tier2	Tier3
Singles	$84,000 or less	$84,001 - $97,000	$97,001 - $130,000	$130,001+
Families	$168,000 or less	$168,001 - $194,000	$194,001 - $260,000	$260,001+

Medicare Levy Surcharge

	No Change	Tier 1	Tier 2	Tier 3
All Ages	0.0%	1.0%	1.25%	1.5%

How do I calculate my income?

The tiers are based on you income for Medicare levy surcharge purposes. To work out you expected income for the 2012-13 financial year, visit the Australia Taxation Office website.

What is a family?

Single parents and couples (including de facto couples) are subject to the family tiers. For more information about families visit the Australia Taxation Office website.

I have children - do I get any extra assistance?

For families with multiple children, the income threshold increases $1,500 for each child after the first. For example, a Tier 1 family with three children will have its income threshold increased by $3,000 - from $168,000 to $171,000.

Will the threshold increase?

The income thresholds in this brochure apply for the 2012-13 financial year. The thresholds will be indexed for future financial years.

What if I cancel my hospital cover - will I be penalised?

If you or your family don't have private health insurance hospital cover and you earn over $84,000 (single) or over $168,000 (family) you will pay the Medicare levy surcharge.

If you are between 31 and 78 years of age and choose not to maintain you hospital cover, you may pay higher premiums under Lifetime Health Cover if you rejoin hospital cover at a later date.

If your rebate is to change, contact your private health insurer now and tell them which tier you are in to avoid a potential tax liability.

For more information visit the Private health website.