As such, I am eagerly looking forward to my standing chiropractic appointment this week…especially since private health insurance operates on a calendar year and all claim thresholds have been reset!
One of the most common questions I am asked as an accountant is “should I have private health insurance?” – of course, I cannot answer that!
Whether or not you should have private health insurance is dependent on your own personal circumstances – both health and financial…what I can do is explain the impact of having or not having private health insurance in regards to the financial side of things…
Often, taxpayers are confused between the “Medicare Levy” and the “Medicare Levy Surcharge”:
I imagine that most of you have heard of Medicare, being the scheme that provides residents of Australia with access to health care. This scheme is funded by the Medicare Levy whereby most taxpayers make a contribution of 2.0% of their taxable income (in some cases there are reductions and exemptions, however these will not be discussed here).
The Medicare Levy Surcharge is different altogether and is in addition to the Medicare levy. If your income is above a certain threshold, and you do not have private hospital insurance, then you may be liable for the Medicare Levy Surcharge.
If you are unsure if the Medicare Levy Surcharge applies to you, please discuss the matter with your accountant, or Contact us for an assessment.