Most people who have private health cover are not aware of how the private health insurance offset works. Your health fund automatically applies a 25% offset to your health premiums. This amount is means – tested and an adjustment is done when you lodge your tax return.


Generally, if a family earns more than $180,000 or a single earns more than $90,000 your rebate will be adjusted down generally meaning that you pay back through your return.


This can be a problem for those not lodging a return when the ATO discover this through their matching processes.


For, those without private health the Pay a Medicare Levy Surcharge of 2%  if their family income is over $180,000 or $90,000 for a single.


More information can be found at the following link on the ATO website

Leave a Comment

Scroll to Top