2014 Tax time FAQs

FAQs about your 2014 Private Health Insurance Statement

You will need the information on the statement to complete the private health insurance section of your tax return.

Every adult covered by a policy will receive their own statement.

Your statement details your share of premiums eligible for the Australian Government Rebate, regardless of who actually made the premium payments.

Defence Health's guide to reading your tax statement

  • 1. What is the health insurer ID?

    AHB is the code used by the ATO to identify Defence Health.

  • 2. Why doesn't the statement show my annual premium at label J?

    The figures in label J relate to your share of premiums eligible for the rebate on private health insurance. Even if you are the only person covered by the policy, this amount does not necessarily correlate to your annual premium.

  • 3. Why are there two amounts of rebate at label K?

    Changes to the way your rebate is calculated this year means you might have two amounts of rebate to include on your tax return. Enter each amount separately onto your tax return. Do not add-up the amounts in any column or row.

  • 4. What does the benefit code at label L mean?

    The ATO uses the ‘benefit code’ to work out the correct level of rebate, based on the age of the oldest person covered by the policy.
    The figure or figures at label L are codes only – not percentages. 

  • 5. Why is my former partner listed on the statement?

    The statement will list your former partner in the column ‘other adult beneficiaries’ if he or she was covered by the policy at the time a premium payment was made.
    Your former partner will be mailed a statement indicating his or her share only, for the relevant period of cover.

  • 6. Why isn't my serving ADF partner listed?

    Serving members of the ADF are not listed as ‘other adult beneficiaries’ because they are not covered by the policy.

  • 7. Why are my children not listed?

    Only adults are listed on the statement. For the purpose of private health insurance, your adult offspring are deemed to be ‘children’ until age 21, or age 25 if they are single, full-time students.

  • 8. What if I will not need to pay tax?

    The rebate on private health insurance is a ‘refundable tax offset’. So you will receive your full entitlement even if you don’t have a tax liability. In that case, you will receive a refund from the ATO when you lodge your tax return.

  • 9. Can I receive the rebate as a reduced premium?

    Yes. Just download and complete the Application to receive or change the Australian Government Rebate as a reduced premium. Your future premiums will be reduced by the rebate tier you nominate.

  • 10. I am part of the Young Adult Support Plan. Where is my hospital cover listed?

    You will need to refer to label A on the statement sent to your mother or father for the relevant number of days with private hospital cover.

  • 11. What do the hospital days at label A mean?

    This section of the statement relates to the Medicare Levy Surcharge.
    If you have an extras-only product, or held private hospital cover for less than 365 days, the ATO will refer to label A to determine whether the Medicare Levy Surcharge (MLS) applies to you. Please see below for the 2013-2014 MLS income thresholds.

    Income thresholds 2013-2014.jpg

  • 12. What is the Medicare Levy Surcharge?

    High income earners without an appropriate level of private hospital cover are required to pay the Medicare Levy Surcharge. It is an additional tax applied by the ATO at the time of assessing your tax return.
    The MLS increases according to income. For information on what income is used to determine your ‘income for Medicare Levy Surcharge purposes’, please refer to the individual tax return instructions 2014 or visit www.ato.gov.au/individuals and search under ’income tests’.
    All Defence Health hospital products exempt you from the MLS for the period that you and all your dependants are covered.
    Please see below for the 2013-2014 MLS income thresholds.

    Income thresholds 2013-2014.jpg

  • 13. Net medical expenses tax offset

    In addition to the rebate, you may be eligible for a tax offset on net medical expenses. 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 individual tax return instructions or tax adviser for details of what expenses qualify for the offset.
    If you believe you qualify for the offset, you can request a financial year claims history from Defence Health, or you can download it from the Member Area of our website. You may also have to contact Medicare to obtain details of Medicare only claims.

 Sourced from the websites of the Department of Health and Ageing and Australian Taxation Office.