Tax and health insurance explained

What's the deal with health insurance, tax and 30 June?

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What do I need to know at tax time?

,

Medicare levy surcharge (MLS)

The MLS is a tax applied to people who earn above a certain income and don't have an appropriate level of hospital insurance.

You can avoid this tax for every day that you hold an appropriate level of hospital cover.

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Lifetime health cover (LHC)

LHC makes hospital cover more expensive if you're 31 or over and getting hospital insurance for the first time. Learn more

Are you under 31? Avoid paying LHC by taking out hospital cover now.

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Australian government rebate

The Australian government rebate on private health insurance is a government subsidy that helps make your insurance cheaper. Learn more

The prices on our website already estimate this rebate, so you can get a clearer picture of the actual cost.*

How much extra tax could you pay without hospital cover?

The Medicare Levy Surcharge (MLS) is a tax applied to high income earners who don’t have an appropriate level of hospital insurance. The tax is designed to reduce the strain on the public system by encouraging people to get private health insurance and get treatment privately. There are more details involved, but you can estimate how much you might get charged straight away.

Change the details below to reflect your situation and estimate how much you'll pay for the MLS:

I'm with and we lodge our tax I have We have child kids and my taxable income is and my taxable income is and our combined income is $Go
$56,000 $108,000 $160,000 $212,000 $264,000
Estimated Surcharge
$ 1,000
Your estimated surcharge is
$1,000

Calculate your rebate
30%

Age of the oldest adult on the policy

“It's nice to know I can get hospital cover for less than it costs to pay the surcharge.”

You could save

$
Loading...

by taking out
Young Singles Saver Hospital

More information Get a quote
Change the details below to reflect your situation I'm with and we lodge our tax I have We have child kids and my taxable income is and my taxable income is and our combined income is $
$56,000 $108,000 $160,000 $212,000 $264,000
Estimated Surcharge
$ 1,000

What type of HBF cover do you currently have?

Great news!

You already have hospital cover, so you don’t have to pay the surcharge.


Estimated tax you’re saving
$1,000
Is your current cover right for you?

“ Last year I got a pay rise and it was a bit of a shock to find out I'd have to pay nearly $1,000 extra tax. It's nice to know I can get hospital cover for less than it costs to pay the surcharge. ”

Your estimated surcharge is
$1,000

Calculate your rebate
30%

Age of the oldest adult on the policy

“It's nice to know I can get hospital cover for less than it costs to pay the surcharge.”

You could save

$
Loading...

by taking out
Young Singles Saver Hospital

More information Let us call you

This is a guide only. You should speak to a financial advisor or registered tax agent who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

Why not invest that money in your health?

I need some help finding the right cover for me

Tell us a little about yourself and in 2 - 3 minutes we’ll find our best cover to suit your needs.

Frequently asked questions

What is the Medicare Levy Surcharge?

The MLS is a tax applied to people who earn above a certain income and don’t have an appropriate level of hospital insurance. The tax is designed to reduce the strain on the public system by encouraging people to go to private hospitals instead.

Learn more.

What is Lifetime Health Cover Loading?

LHC loading is an extra cost applied to the price you pay for hospital insurance for every year you do not have hospital insurance. It only affects people 31 or older who don’t have hospital insurance and decide to buy it later in life. It’s designed to encourage people to buy hospital insurance earlier in life and stay covered.

To avoid LHC loading, all you need to do is buy hospital insurance on or before 1 July following your 31st birthday.

Learn more.

What is the Australian Government Rebate on Private Health Insurance?

The Australian government rebate is a government initiative that helps make health insurance more affordable for those who are eligible to receive it. It’s a sum of money you can get back at tax time or apply to your premium to make it cheaper. The rebate applies to hospital, extras and urgent ambulance insurance.

Learn more.

Get in touch with HBF

We'll help you find our best cover that suits your needs.

What am I covered for?

  • Dental surgery
  • Joint reconstructions
  • Gynaecology
  • Hernia and appendix
  • Tonsils, adenoids and grommets

What am I covered for?

  • Dental surgery
  • Hernia and appendix
  • Tonsils, adenoids and grommets
  • Bone, joint and muscle
  • Male reproductive system
  • Gastrointestinal endoscopy
  • Chemotherapy, radiotherapy and immunotherapy for cancer
  • Blood
  • Gynaecology
  • Joint reconstructions
  • Ear, nose and throat
  • Kidney and bladder
  • Digestive system
  • Miscarriage and termination of pregnancy
  • Skin