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Help needed health insurance/tax implications


Sulac

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Hi all, can anyone advise on this?

 

My husband and I have had a renewal notice for our private health insurance and I am not sure if it is in our vested interest to have insurance because of my husband's income.

 

My husband is on quite a high salary (although it doesn't seem to go far in Perth). I think I heard something about an individual being penalised from a tax point of view if they don't take out private health insurance.

Would anyone know anything about this?

 

On a separate but similar note.

 

We have only had private health insurance for a year. Haven't needed to use it much at all, certainly don't feel we got our moneys worth from it. The renewal health insurance for four children and two adults is a massive whopping hefty $2901.95 !!!

 

As we are in the throes of separation and watching our pennies, this is a big expense, but not sure if we would incur extra penalties should we want to get back into private health insurance further down the line.

 

Any help appreciated.

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If he is over a certain salary I think its around 189,000, could have changed and you dont have health insurance you will have to pay an extra levy at tax time which is around the same cost as the health insurance so you are just as well having it and its always there if you do need it. Thats not a bad price either we pay more for 2 adults and one child

Edited by AJ
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but not sure if we would incur extra penalties should we want to get back into private health insurance further down the line.

 

 

Yes you will. This extract from

http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/default.htm'>http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/default.htm

 

"If you purchase hospital cover after the 1st of July following your 31st birthday, you will have to pay theLifetime Health Cover (LHC) loading on top of your premium. The loading increases for every year you are aged over 30.

You can check to see if you need to pay the LHC loading and how much it may be by using the Lifetime Health Cover calculator."

 

The full explanation of private health cover:

 

http://www.privatehealth.gov.au/

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