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What does the MLS do?
If you don't have hospital cover you'll pay:
- 1% for singles earning over $90,000 ($180,000 for families)
- 1.25% for singles earning over $105,001 ($210,001 for families)
- 1.5% for singles earning over $140,000 ($280,001 for families)
How do I avoid it?
To avoid the MLS your policy must:
- Be an appropriate level of hospital cover
- Be provided by a registered Australian health fund
- Have an excess of $500 or less for singles and $1,000 or less for all other policies
How is it calculated?
The MLS takes into consideration:
- Your taxable income
- Your total reportable fringe benefits
- Any amounts on which family trust distribution tax has been paid
Final points to keep in mind
- Extras cover does not exempt you from the MLS.
- Income thresholds for families increase by $1,500 per child after the first child
- The higher your excess, the lower your premiums
What does the LHC do?
- Adds 2% to the cost of your health insurance premium for every year that you don't have hospital cover once you turn 31
- Caps at a maximum increase of 70%
- Stays in effect until you hold hospital cover for 10 consecutive years
How do I avoid it?
- Take out an appropriate level of hospital cover
- The policy must be provided by a registered Australian health fund
How long do I have after I turn 31 to take out cover?
- The Lifetime Health Cover base day is 1 July following your 31st birthday.
Are there any special exemptions?
- Australians who were born on or before 1 July 1934
- Serving members of the Australian Defence Force (ADF)
- Department of Veterans' Affairs (DVA) Gold Card holders
- Learn more about LHC exemptions and special conditions
Why was the rebate introduced?
- To make private health insurance more accessible to Australians, especially those who are older and/or on lower incomes.
What's the eligibility criteria for the rebate?
- You must fall under the appropriate age and income thresholds
- You must be eligible for Medicare (eg be a Green or Blue Medicare cardholder)
- You can still claim the rebate with extras only cover
How do I claim the rebate?
- It can be claimed through tax when you fill out your annual return
- An easier alternative is to claim it as a premium reduction when you take out health insurance
Private health insurance rebate levels
< Age 65
< Age 65
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