i going to have to call aus unity. anybody with them?
Pre paying private health insurance
- Thread starter devank
- Start date
We were able to pay 13 months in advance with Australian Unity.
No, just cut and paste!! I was going to give a summary, but I was worried I'd get it wrong...
Im keeping my hospital cover and cancelling my extras. Cheaper to pay my way for dental and 1 set of orthodontics than paying the extra 30%
I received the invoices for pre-payment up to 31 December 2013 today, Wylie - and it's done
. Perhaps they'll still let you pre-pay the extra 6 months.cheers
Just paid 12 months with Aus Unity. iSelect said you could go up to 24 months. However, they are also telling customers that the ATO has not explicitly said whether the 30% rebate applies to next fin year even if you pay in advance. Haven't done any more research on that last bit myself, tho, sorry.
Cheers, Ali
Cheers, Ali
In regards to prepaying private health insurance and the Govt. regulations/cutoffs:
Members affected are singles with income over $84,000, and families
with income over $168,000.
I currently have a single private health insurance cover however am a family man with young children (we do not have private health insurance yet as partner/kids dont use any of the extras but will certainly consider soon with the additional 2%pa increase every year).......
I am over the signle income of $84k however am likely over the family income $168k (based on Centrelink calculation of gross income PLUS rental deductions - still cant work this one out and not sure if Medicare/Centrelink can also!).
Therefore, will I be entitled to the rebate anyways if it is based on family criteria even though I only have single cover?? Or perhaps it is worthwhile prepaying to get the rebate now as I will be assessed on the single cover - any feedback/info would be great as I do not seem to get any information from the website. I will be contacting my PH insurer next week but again that is only one person's opinion "on the phone" so may not exactly be right!
Thanks
R
Members affected are singles with income over $84,000, and families
with income over $168,000.
I currently have a single private health insurance cover however am a family man with young children (we do not have private health insurance yet as partner/kids dont use any of the extras but will certainly consider soon with the additional 2%pa increase every year).......
I am over the signle income of $84k however am likely over the family income $168k (based on Centrelink calculation of gross income PLUS rental deductions - still cant work this one out and not sure if Medicare/Centrelink can also!).
Therefore, will I be entitled to the rebate anyways if it is based on family criteria even though I only have single cover?? Or perhaps it is worthwhile prepaying to get the rebate now as I will be assessed on the single cover - any feedback/info would be great as I do not seem to get any information from the website. I will be contacting my PH insurer next week but again that is only one person's opinion "on the phone" so may not exactly be right!
Thanks
R
I received the invoices for pre-payment up to 31 December 2013 today, Wylie - and it's done
cheers
I called up Medibank Private and obtained the premium amount that I need to pay to go up to 31 December 2012. I've been told to just pay that via their website (enter the amount and credit card details) or use BPay. Is everyone doing this? How would I know that they will consider this as a prepayment, and not an overpayment of my existing monthly payments?
I pre-pay my health insurance every year this way before the April ~5% increase takes place. Premium is due in July but I pay for 12mths worth in March at the March rate (before the April rate takes effect). It purely extends your policy period for another 12 months from when it was originally due, so no 'overpayment'
good idea! Never would have thought of that. Cheers, Ali
Is that same for other insurances like LL, IP, trauma, car?
That's great. I wonder why they don't adjust your prepayment period for the 5% increase (ie. shorten it). After all, any amounts prepaid are refundable upon early termination of the policy.
Ok found this on ato website.. Might help clear up some things.
http://www.ato.gov.au/individuals/content.aspx?menuid=42738&doc=/content/00233246.htm&page=15&H15
Medicare levy surcharge changes
What are the changes to the Medicare levy surcharge?
From 1 July 2012, the Medicare levy surcharge will be income tested against the following income tier thresholds:
table would not print out clearly so i have modded it to be understanable, please refer to ato website link for chart
Singles
Unchanged $84,000 or less
Tier 1 $84,001-97,000
Tier 2 $97,001-130,000
Tier 3 $130,001 or more
Families
Unchanged $168,000 or less
Tier 1 $168,001-194,000
Tier 2 $194,001-260,000
Tier 3 $260,001 or more
Medicare surcharge rate
Rates
Tier 1 1.0%
Tier 2 1.25%
Tier 3 1.5%
* The family income threshold is increased by $1,500 for every child after the first child.
There is no change in how the Medicare levy surcharge applies. However, from 1 July 2012 the Medicare levy surcharge rate you will be charged may increase depending on your income tier.
Example
Josh is 35 years old, is single, and does not have the appropriate level of private patient hospital cover. In 2012-13 Josh's taxable income is $90,000.
When Josh completes his tax return he also completes the income test section of the tax return and declares:
reportable fringe benefits of $20,000
net investment losses of $7,000.
Josh's total income for Medicare levy surcharge purposes is $117,000, which makes him a tier 2 income earner for calculating the Medicare levy surcharge. The amount of Medicare levy surcharge is only calculated against taxable income and reportable fringe benefits.
my understanding is: your surcharge level or tier is based on income + reportable fringe benefits + net investment losses, but the surcharge itself is based on income + reportable fringe benefits only. if you do pay private health care, then you dont have to pay the medicare extra surcharge, but the private health care rebate income is based on income + reportable fringe benefits + investment loss. So it basically means I would be a tier 3 rate.
In 2011-12, Josh's Medicare levy surcharge liability is:
($90,000 taxable income + $20,000 reportable fringe benefits) x 1%
= $1,100.
In 2012-13 Josh's Medicare levy surcharge liability will be:
($90,000 taxable income + $20,000 reportable fringe benefits) x 1.25%
= $1,375.
*********
i can see so many people just dumping private health because the 30 % rebate wont be available to me. In fact based on the negative rent loss + tax income i would be well and truely over 130K and meaning I would get no rebate at all.
I think it would be cheaper for me just to pay the medicare levy then it would be to be with private health insurance any more! :O considering australian unity is at $1255 a year without extras and that is the cheapest fund I have found so far. And funds are going up more then inflation a year!... I can see this new method back firing on the goverment with people dumping private health care to go into the public system. Yep well done government for your iniative and confusion!.
http://www.ato.gov.au/individuals/content.aspx?menuid=42738&doc=/content/00233246.htm&page=15&H15
Medicare levy surcharge changes
What are the changes to the Medicare levy surcharge?
From 1 July 2012, the Medicare levy surcharge will be income tested against the following income tier thresholds:
table would not print out clearly so i have modded it to be understanable, please refer to ato website link for chart
Singles
Unchanged $84,000 or less
Tier 1 $84,001-97,000
Tier 2 $97,001-130,000
Tier 3 $130,001 or more
Families
Unchanged $168,000 or less
Tier 1 $168,001-194,000
Tier 2 $194,001-260,000
Tier 3 $260,001 or more
Medicare surcharge rate
Rates
Tier 1 1.0%
Tier 2 1.25%
Tier 3 1.5%
* The family income threshold is increased by $1,500 for every child after the first child.
There is no change in how the Medicare levy surcharge applies. However, from 1 July 2012 the Medicare levy surcharge rate you will be charged may increase depending on your income tier.
Example
Josh is 35 years old, is single, and does not have the appropriate level of private patient hospital cover. In 2012-13 Josh's taxable income is $90,000.
When Josh completes his tax return he also completes the income test section of the tax return and declares:
reportable fringe benefits of $20,000
net investment losses of $7,000.
Josh's total income for Medicare levy surcharge purposes is $117,000, which makes him a tier 2 income earner for calculating the Medicare levy surcharge. The amount of Medicare levy surcharge is only calculated against taxable income and reportable fringe benefits.
my understanding is: your surcharge level or tier is based on income + reportable fringe benefits + net investment losses, but the surcharge itself is based on income + reportable fringe benefits only. if you do pay private health care, then you dont have to pay the medicare extra surcharge, but the private health care rebate income is based on income + reportable fringe benefits + investment loss. So it basically means I would be a tier 3 rate.
In 2011-12, Josh's Medicare levy surcharge liability is:
($90,000 taxable income + $20,000 reportable fringe benefits) x 1%
= $1,100.
In 2012-13 Josh's Medicare levy surcharge liability will be:
($90,000 taxable income + $20,000 reportable fringe benefits) x 1.25%
= $1,375.
*********
i can see so many people just dumping private health because the 30 % rebate wont be available to me. In fact based on the negative rent loss + tax income i would be well and truely over 130K and meaning I would get no rebate at all.
I think it would be cheaper for me just to pay the medicare levy then it would be to be with private health insurance any more! :O considering australian unity is at $1255 a year without extras and that is the cheapest fund I have found so far. And funds are going up more then inflation a year!... I can see this new method back firing on the goverment with people dumping private health care to go into the public system. Yep well done government for your iniative and confusion!.
Prepay now to 31 December 2013. Next year is election year. Coalition has promised to reverse this legislation. Just wait and see before you start thinking about dumping your health cover. Firstly, you might need it (just like insurance). Secondly, Lifetime Health Cover rules may impact you in the longer run depending on your age.
If you just dump the extras and keep the hospital then you wont pay medicare levy. You can then reassess the cover you need if and when it is reversed
I meant if it was a long term thing. I wont be dumping it in the next 12 months, but I can see people doing that though.
Plus I think even if we get in on the 30% rebate now, the tax man is going to catch you out when you lodge your 12/13 tax anyhow.... because it is all assessed in your tax anyhow on what rebate level you should of been claiming for that 12 month period, so if you claim your 30% rebate now, and they say no you earnt X amount so therefore your on tier 1/2/3 there for you owe us money as you should of had 20% 10% or no rebate. They even say on the website, it doesnt matter if you have claimed 30% rebate, it gets reassessed when you do your tax, so that way if you owe you owe, or if you claimed no rebate and where entitled to 30% back then you get it back then when you lodge your tax!
The tax man has already thought about this and ways for people to dodge tax and ways for them to get their money back!
Plus I think even if we get in on the 30% rebate now, the tax man is going to catch you out when you lodge your 12/13 tax anyhow.... because it is all assessed in your tax anyhow on what rebate level you should of been claiming for that 12 month period, so if you claim your 30% rebate now, and they say no you earnt X amount so therefore your on tier 1/2/3 there for you owe us money as you should of had 20% 10% or no rebate. They even say on the website, it doesnt matter if you have claimed 30% rebate, it gets reassessed when you do your tax, so that way if you owe you owe, or if you claimed no rebate and where entitled to 30% back then you get it back then when you lodge your tax!
The tax man has already thought about this and ways for people to dodge tax and ways for them to get their money back!
HCF has a good tool for calculuations..
http://www.hcf.com.au/online-tools/rebate-calculator/#ac=HP_Tile_Fed_Govt_Rebate
just remember when you enter your information in the tool either monthly or weekly you will have to multiple out to get the yearly rate on the second page... so you can compare how much having the cover costs, compared to how much tax you would pay.
http://www.hcf.com.au/online-tools/rebate-calculator/#ac=HP_Tile_Fed_Govt_Rebate
just remember when you enter your information in the tool either monthly or weekly you will have to multiple out to get the yearly rate on the second page... so you can compare how much having the cover costs, compared to how much tax you would pay.
