YOURLifeChoices subscriber Kerri is keen to know which income year will determine her rebate on private health insurance.
I understand the brackets and the effective date being July 1,2012. I’d like to know however which income year they use to determine if the rebate is reduced. We sold a property this year so our income will be high in the 2011-2012 tax year but we are retiring in December so our income for the 2012-2013 year will be dramatically less.
A. Kerri, the year in which your taxable income is means tested for the Government Private Health Insurance Rebate is 2012/13. The rebate will also be means tested in subsequent years.
The Private Health Insurance Rebate will reduce for singles earning more than $84,000 and families earning more than $168,000. The rebate will cease altogether for singles earning more than $130,000 and families who earn over $260,000.