This is a question that we get a lot – particularly around June when the insurance companies have lots of ads on TV telling everyone that they will be severely penalised if they don’t!

But do you really need it?

No, not necessarily for everyone. We are talking from a tax and cost perspective only here – please think about whether having health insurance is right from a health side of things for yourself, and if you do decide to get it, do your research on which one.

There is the cost of the cover, there is a rebate, and there is also a surcharge. It’s all very complicated, and so we have put together a three part video series to help explain it.

Do I need private health insurance? (part 1)

The table behind Shaun in video 1:

 Base TierTier 1Tier 2Tier 3
Single Threshold$90,000 or less$90,001–$105,000$105,001–$140,000$140,001 +
Family Threshold$180,000 or less$180,001–$210,000$210,001–$280,000$280,001+
Medicare Levy Surcharge0%1%1.25%1.5%
(Under 65 Years old)25.415%16.943%8.471%0%

I’m turning 31, do I need private health insurance? (part 2)

The table behind Shaun in video 2:

 Base Premium  
Age$1,000Penalty %Penalty $Saving $
30$1,000
40$1,000202,00010,000
50$1,000404,00020,000
60$1,000606,00030,000

 

The carrot & the stick – do I need private health insurance (part 3)

The table behind Shaun in video 3: (single threshold)

 Base TierTier 1Tier 2Tier 3
Single Threshold(example income $90K)(example income $98K)(example income $123K)(example income $150K)
Medicare Levy Surcharge0%1%
$980
1.25%
$1,537
1.5%
$2,250
(Under 65 years)
Cover cost of $2K
25.415%
$508.30
=$1,491.70
16.943%
$338.86
=$1661.14
8.471%
$169.42
=1,830.58

$2,000

The table behind Shaun in video 3: (family threshold)

 Base TierTier 1Tier 2Tier 3
Family Threshold(example income $180K)(example income $195K)(example income $245K)(example income $280K)
Medicare Levy Surcharge0%1%
$1,950
1.25%
$3,062
1.5%
$4,200
(Under 65 years)
Cover cost of $4K
25.415%
$1,016
=$2,984
16.943%
$677
=$3,322
8.471%
$338
=$3,661

$4,000

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