• How can I avoid paying the Medicare Levy Surcharge?
• I am part of the Young Adult Support Plan. How does the Medicare Levy Surcharge affect me?

• Am I eligible for a tax offset on net medical expenses in addtion to the Rebate?

Claiming the Rebate on private health insurance as a tax offset.

Who can claim the Rebate as a tax offset?

You are entitled to claim the Rebate if you are the person paying the premiums.

If the amount shown at 'G' is zero, then you have already claimed the Rebate as a reduced premium.

What if two or more people pay the premium?

If two or more people pay the premium (i.e. payments are made from a joint bank account) then each individual will make a separate claim for their portion of the Rebate. Defence Health can not identify which person has paid which portion.

What if my employer pays my health insurance premiums?

If your employer pays the full non-rebated premium, you, not your employer, will be entitled to claim the Rebate. Your Private Health Insurance Statement will indicate the tax offset you may be entitled to at 'G'.

My partner and I have separated and I have been paying the premium. How do I claim the Rebate?

The name on the statement is not important. The important thing to remember is that you are entitled to the Rebate if you pay the premium.

Can I claim the Rebate as a tax offset when I salary sacrifice my health insurance premiums?

You are still paying the premiums whether you are doing it before or after your tax is deducted. Your Private Health Insurance Statement will indicate at 'G' the tax offset you may be entitled to.

What if I don't have a tax liability?

The Rebate on private health insurance is a 'refundable tax offset'. This means that you will receive your full entitlement even if you do not have a tax liability, either through your tax return or from a Medicare office with an appropriate Defence Health receipt (available upon request).

I am part of the Young Adult Support Plan (YASP). What do I need to do?

All YASP members are covered under two private health insurance policies, being your own Top Extras membership and your parents’ for hospital cover. The amount shown on your statement at 'G' will indicate the tax offset you may be entitled to for your Top Extras membership.

The premiums deducted from my pay aren't the same as my Private Health Insurance Statement?

We can only take into account those premiums received by Defence Health between 1 July 2010 and 30 June 2011. It may be that we haven’t received your final deduction, or we may have received last year’s final deduction in July 2010.

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Why aren't all family members shown on the statement?

The Australian Taxation Office requires us to address the Private Health Insurance Statement to the policy holder. The Statement is for tax purposes only and does not include all the people covered by the policy.

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Why doesn't my Private Health Insurance Statement show an amount equal to my 12 monthly premiums?

The figures on your Private Health Insurance Statement relate to those premiums processed by Defence Health between 1 July 2010 and 30 June 2011. If you have paid premiums in advance, then the applicable rebate on those premiums can be fully claimed in the financial year in which the payment is made. This amount will show at 'G' on your statement.

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What does the highest level of Rebate mean?

This relates to the maximum level of rebate you were entitled to during the 2010/11 financial year. The base rebate is 30% and increases to 35% if someone covered by your membership is aged 65. It increases again to 40% if someone covered is 70 years or older.

Can I apply to claim the Rebate as a reduced premium?

Yes – all you need to do is fill in the Application to receive the Federal Government 30% Rebate as a reduced premium and your future premiums will be reduced by your Rebate amount.

The Medicare Levy Surcharge.

How can I avoid paying the Medicare Levy Surcharge?

High income earners without an appropriate level of private hospital cover are required to pay an additional Medicare Levy Surcharge of 1% if they earn income above the Medicare Levy Surcharge threshold. For the 2010/2011 financial year, the threshold levels are $77,000 for single members and $154,000 for all other membership categories including couples, single parents and families. The threshold of $154,000 is increased by $1,500 for each dependant child after the first. People earning above the threshold amount can avoid paying the Medicare Levy Surcharge by taking out an appropriate level of hospital cover that covers them and all their dependants for the full financial year. For information on what income is used to determine your ‘income for (Medicare Levy) Surcharge purposes’ see TaxPack 2011 or visit ato.gov.au/individuals and search under ‘income tests’.

Permanent ADF personnel should be aware that they are not exempt from the Medicare Levy Surcharge unless an appropriate hospital product covers all of their civilian dependants.

You will be pleased to know that all Defence Health products with a hospital component will remove your liability for the Medicare Levy Surcharge for the period that you and all your dependants are covered.

back to top

I am part of the Young Adult Support Plan. How does the Medicare Levy Surcharge affect me?

Net Medical Expenses tax offset.

Am I eligible for a tax offset on net medical expenses in addition to the Rebate?

In addition to the Rebate, you may be eligible for a 20% tax offset on net medical expenses over $2,000. Net medical expenses are the medical expenses you have paid less any refunds you have received, or could receive, from Medicare or a private health fund. You should consult your Tax Pack or tax adviser for details of what expenses qualify for the offset. If you believe you had net medical expenses over $2,000 in 2010/11 you can request a financial year claims history from Defence Health. You may also have to contact Medicare to obtain details of Medicare only claims.

• How can I avoid paying the Medicare Levy Surcharge?
• I am part of the Young Adult Support Plan. How does the Medicare Levy Surcharge affect me?

• Am I eligible for a tax offset on net medical expenses in addtion to the Rebate?

Claiming the Rebate on private health insurance as a tax offset.

Who can claim the Rebate as a tax offset?

You are entitled to claim the Rebate if you are the person paying the premiums.

If the amount shown at 'G' is zero, then you have already claimed the Rebate as a reduced premium.

What if two or more people pay the premium?

If two or more people pay the premium (i.e. payments are made from a joint bank account) then each individual will make a separate claim for their portion of the Rebate. Defence Health can not identify which person has paid which portion.

What if my employer pays my health insurance premiums?

If your employer pays the full non-rebated premium, you, not your employer, will be entitled to claim the Rebate. Your Private Health Insurance Statement will indicate the tax offset you may be entitled to at 'G'.

My partner and I have separated and I have been paying the premium. How do I claim the Rebate?

The name on the statement is not important. The important thing to remember is that you are entitled to the Rebate if you pay the premium.

Can I claim the Rebate as a tax offset when I salary sacrifice my health insurance premiums?

You are still paying the premiums whether you are doing it before or after your tax is deducted. Your Private Health Insurance Statement will indicate at 'G' the tax offset you may be entitled to.

What if I don't have a tax liability?

The Rebate on private health insurance is a 'refundable tax offset'. This means that you will receive your full entitlement even if you do not have a tax liability, either through your tax return or from a Medicare office with an appropriate Defence Health receipt (available upon request).

I am part of the Young Adult Support Plan (YASP). What do I need to do?

All YASP members are covered under two private health insurance policies, being your own Top Extras membership and your parents’ for hospital cover. The amount shown on your statement at 'G' will indicate the tax offset you may be entitled to for your Top Extras membership.

The premiums deducted from my pay aren't the same as my Private Health Insurance Statement?

We can only take into account those premiums received by Defence Health between 1 July 2010 and 30 June 2011. It may be that we haven’t received your final deduction, or we may have received last year’s final deduction in July 2010.

back to top

Why aren't all family members shown on the statement?

The Australian Taxation Office requires us to address the Private Health Insurance Statement to the policy holder. The Statement is for tax purposes only and does not include all the people covered by the policy.

back to top

Why doesn't my Private Health Insurance Statement show an amount equal to my 12 monthly premiums?

The figures on your Private Health Insurance Statement relate to those premiums processed by Defence Health between 1 July 2010 and 30 June 2011. If you have paid premiums in advance, then the applicable rebate on those premiums can be fully claimed in the financial year in which the payment is made. This amount will show at 'G' on your statement.

back to top

What does the highest level of Rebate mean?

This relates to the maximum level of rebate you were entitled to during the 2010/11 financial year. The base rebate is 30% and increases to 35% if someone covered by your membership is aged 65. It increases again to 40% if someone covered is 70 years or older.

Can I apply to claim the Rebate as a reduced premium?

Yes – all you need to do is fill in the Application to receive the Federal Government 30% Rebate as a reduced premium and your future premiums will be reduced by your Rebate amount.

The Medicare Levy Surcharge.

How can I avoid paying the Medicare Levy Surcharge?

High income earners without an appropriate level of private hospital cover are required to pay an additional Medicare Levy Surcharge of 1% if they earn income above the Medicare Levy Surcharge threshold. For the 2010/2011 financial year, the threshold levels are $77,000 for single members and $154,000 for all other membership categories including couples, single parents and families. The threshold of $154,000 is increased by $1,500 for each dependant child after the first. People earning above the threshold amount can avoid paying the Medicare Levy Surcharge by taking out an appropriate level of hospital cover that covers them and all their dependants for the full financial year. For information on what income is used to determine your ‘income for (Medicare Levy) Surcharge purposes’ see TaxPack 2011 or visit ato.gov.au/individuals and search under ‘income tests’.

Permanent ADF personnel should be aware that they are not exempt from the Medicare Levy Surcharge unless an appropriate hospital product covers all of their civilian dependants.

You will be pleased to know that all Defence Health products with a hospital component will remove your liability for the Medicare Levy Surcharge for the period that you and all your dependants are covered.

back to top

I am part of the Young Adult Support Plan. How does the Medicare Levy Surcharge affect me?

Net Medical Expenses tax offset.

Am I eligible for a tax offset on net medical expenses in addition to the Rebate?

In addition to the Rebate, you may be eligible for a 20% tax offset on net medical expenses over $2,000. Net medical expenses are the medical expenses you have paid less any refunds you have received, or could receive, from Medicare or a private health fund. You should consult your Tax Pack or tax adviser for details of what expenses qualify for the offset. If you believe you had net medical expenses over $2,000 in 2010/11 you can request a financial year claims history from Defence Health. You may also have to contact Medicare to obtain details of Medicare only claims.