Private Health Insurance in Australia

27 November 2024 | News

In Australia, private health insurance allows you to receive hospital treatment as a private patient and covers expenses not paid by Medicare (e.g., physiotherapy). Costs and covered treatments depend on the policy you choose.

Benefits:

• More choice of hospitals and doctors.
• Coverage for extra services (e.g., physiotherapy, dental, glasses).
• Avoid the Medicare Levy Surcharge (MLS) if you earn above a certain threshold.
• Reimbursement for lower premiums or tax reductions if your income is below a certain threshold.
• Lifetime Health Cover: Take out hospital insurance before age 31 to avoid higher premiums in the future.

Medicare Levy Surcharge (MLS):

• The MLS is a tax for those earning above a certain threshold and not having private health insurance.
• Rates range from 1% to 1.5% depending on income.
• The tax also applies to dependents (e.g., spouse, children under 21).

Avoid the MLS:

• Income below the threshold or private hospital insurance covering the entire family.
• If you have a policy with a higher excess than $500 (single) or $1,000 (families), you may be exempt from the surcharge.

Private health insurance is not mandatory, but it offers more flexibility and quicker access to treatments.

Source PrivateHealth.Gov.Au

www.ato.com