health insurance and hospital levy

[Georges]

What's the deal with the medicare levy? Is it if we earn more than 77k (gross or after tax?), then we have to pay extra levy?

I used to have a medibank hospital cover which I temporarily deactivated. If i reactivate it i have to pay $68 per month.

Can I change to HCF which is only $51 per month without triggering that extra rate after 31 years old?

 

[Propertunity]

What's the deal with the medicare levy? Is it if we earn more than 77k (gross or after tax?), then we have to pay extra levy?

The surcharge is calculated at the rate of 1% of taxable income. It is in addition to the Medicare Levy of 1.5%, which is paid by most Australian taxpayers.
You have to pay the surcharge if you are:

* a single person with an annual taxable income greater than $77,000 in the 2010-11 financial year (previously $73,000 in 2009-10); or
* a family or couple with a combined taxable income greater than $154,000 in the 2010-11 financial year (previously $146,000 in 2009-10). The family income threshold increases by $1,500 for each dependent child after the first;
* and do not have an approved hospital cover with a registered health fund.
Read more here:
http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/mls.htm

 

[Ridin-High]

Mines fallen under the threshold due to investment losses so i canned the cover (Hospital only)

Regards,

RH

 

[Luv2Travel]

There have been some changes, mentioned here.

http://www.somersoft.com/forums/showthread.php?t=63286&highlight=medicare+levy+surcharge

Your income for surcharge purposes includes your:

- taxable income (including the net amount on which family trust distribution tax has been paid)
- reportable fringe benefits amount, as reported on the payment summary
- total net investment loss
- reportable superannuation contributions
- less
if you are aged 55 to 59 years old, any taxed element of a superannuation lump sum, other than a death benefit, which you received that does not exceed your Low rate cap on super lump sum benefits.

 

[wobbycarly]

So they're adding investment losses back in? Since when?

Looks like I might be forced into upgrading private health this year.

 

[Georges]

investment loses, u mean capital loss is deducted from your salary?

 

[Shaneelastic]

So they're adding investment losses back in? Since when?

Looks like I might be forced into upgrading private health this year.

KRUDD two or three budgets ago

rental losses, gearing losses all that jazz


same time he got rid of the overseas workers exemptions

closed pelnty of tax loopholes then

 

[pennyk]

the other issue is that if you don't have private health insurance when you are 30 or so, you will pay higher health insurance costs when you are older....


http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/lifetimehealthcover.htm

Pen

 

[Georges]

guys
does that mean if someone is earning 80,000 from salary, and after he deducts depreciation loss, some share trading loss, some property expenses, and lets say he gets to 60k only after deducting all that, does that mean he is free of the hospital cover surcharge?