From 1 July 2012, an individual’s entitlement to a private health insurance rebate will be income tested. These changes are for the 2012-13 financial year.Taxpayers will not be entitled to their current rate of rebate if their income for Medicare levy surcharge purposes is either:
- a single income of $84,001 or more
- a combined family income of $168,001 or more.
There are also two new income thresholds where taxpayers will pay a higher rate of Medicare levy surcharge at 1.25% or 1.5% as per the following table:
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Income thresholds
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| Singles | $0 – $84,000 | $84,001 – $97,000 | $97,001 – $130,000 | $130,001 and above |
| Families* | $0 – $168,000 | $168,001 – $194,000 | $194,001 – $260,000 | $260,001 and above |
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Private health insurance rebate
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| Unchanged | Tier 1 | Tier 2 | Tier 3 | |
| Aged under 65 | 30% | 20% | 10% | 0% |
| Aged 65-69 | 35% | 25% | 15% | 0% |
| Aged 70 or over | 40% | 30% | 20% | 0% |
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Medicare levy surcharge
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| Rates | 0% | 1% | 1.25% | 1.5% |
* The families’ threshold is increased by $1,500 for each dependent child after the first. Families include couples and single parent families.