Freeze on health rebates and levies

Thresholds which apply to the Medicare Levy Surcharge and Private Health Insurance Rebate will not be indexed for three years, from 1 July 2015 to 30 June 2018.

Those who earn above a certain threshold and do not have complying private health insurance pay the Medicare Levy Surcharge. Income is split into tiers and a percentage is applied.

Taxpayers who have complying private health insurance can claim a rebate on the premium they pay. Again, this rebate is assessed based on taxable income and refunded as a percentage of the premium.

Each year these thresholds are indexed to account for the rise in income linked to inflation. For the period of three years as detailed above, such indexation will not apply and savings made will be invested in the Medical Research Future Fund.

Written by Debbie McTaggart

LOADING MORE ARTICLE...