30% Rebate for PHI

Just thought I would pass on this info I just found out about:

July 2012 - The 30% rebate for PHI is going to be means tested. If you are a high income earner, you will no longer be entitled to the rebate.

You can get around this for 12 months by paying your PHI upfront for the year if you pay by 30 June 2012.

Ring your health fund, because by doing this I am saving $800+ for the year.

I rang my PHI and the lady told me to ring back mid-June and arrange for the Annual Fee to be taken out of my bank account on June 28. This will include the 30% rebate for another year.

Because myself and my husband both work and run a small business, we are classed as high income earners.
This will be the only perk we get out of the new budget. Julia said NO to 1% cut in Small Business Tax, so we get no tax breaks at all. :(

(So much for helping out families, pfft. Apparently my family does not count!!! - Time to give this government their marching orders)

I was just reading about this in the Sunday paper.

Cut offs for no change are $84,000 for singles, $168,000 for familes.

Hi,
I too am going to pay for a year up front, but it may pay to check with your health fund, as when I rang up to get bpay details, I was told that I can pay up to June 2014, as this was what the ATO has stipulated (ie, two years).
I am acting in a higher position that will put us over this year, but if I go back to my substantive position, we won't be over, so I am only paying for one year at this stage. The option to pay ahead finishes on 30/06/2012, so I will kick myself if I end up staying on higher duties, but at least the money is sitting in the offset account against the mortgage, so hopefully will work out about the same!!
Regards
Minx

Thanks for tip Snowbunny I will do that.

As for what's considered to be high earners, don't get me started.

i agree with the means testing for 'high-income earners' however i think the amounts could have been more flexible. i think both major parties are useless at the moment. at least they upped the tax-free threshold. (i could go on but will stop)

It may also be worthwhile to Newbies to check the new Tax Legislation for the Tax Rebate on Net Medical Expenses. From 1st July 2012 the Net Medical expenses will be means tested; meaning High Income Earning will also have to have Net Medical Expenses over $5000 (Low Income Earners $2000) before they can claim the 10% rebate (Low Income Earners 20%) on all Net Medical Expenses over this amount. You only have to go over by $1 to miss out. One family member can claim for themselves and ALL their dependents, e.g. Husband; Spouse and Children (regardless of Income). Refer to the ATO Website for the new changes.

Lin1970 don't be tricked by the increase in the tax free thresholds, they have reduced the gap between tax bands so you will pay higher tax on what you earn as compared to the bands now. By the time you get to the top band which isn't that high you'll be paying almost as much as before.

Just found this one a government department website. Thought it might be helpful to explain whats going to happen.

Changes to the Private Health Insurance Rebate from 1 July


From 1 July 2012, the Australian Government will introduce three new Private Health Insurance Incentive Tiers:

• If you are a single earning $84 000 or less, or a family earning $168 000 or less, you will get a rebate of:
  
  
  
  • 30 per cent, if the policy members are under 65 years
    
  • 35 per cent, if one or more policy members is between 65 and 69 years
    
  • 40 per cent, if one or more policy members are 70 years or older.
    


• If you are a single earning between $84 001 and $97 000, or a family earning between $168 001 and $194 000 you will get a rebate of:
  
  
  
  • 20 per cent, if the policy members are under 65 years
    
  • 25 per cent, if one or more policy members is between 65 and 69 years
    
  • 30 per cent, if one or more policy members are 70 years or older.
    


• If you are a single earning between $97 001 and $130 000, or a family earning between $194 001 and $260 000 you will get a rebate of:
  
  
  
  • 10 per cent, if the policy members are under 65 years
    
  • 15 per cent, if one or more policy members is between 65 and 69 years
    
  • 20 per cent, if one or more policy members are 70 years or older.
    


• If you are a single earning over $130 000 or a family earning over $260 000 you will not get a rebate regardless of age.
  

Note: the thresholds are increased each year, based on growth in Average Weekly Ordinary Time Earnings. Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1500 for each child after the first.

Singles earning $84 000 or less, and families earning $168 000 or less, will continue to get the existing 30, 35 and 40 per cent rebate, depending on their age.

Thanks for that info Red5.

Looks like I will still miss out on any sort of rebate, so I'll take the 30% for 12 more months and see what happens with my tax the year after.

Me too, thanks for the heads up about paying early I am now paid up until 31/6/13 and saved $1500. Better than a kick in the teeth!

$1500 saved - good job.
Can we spend this on new clothes?? lol

http://www.taxcalc.com.au/1213.html#results

hi, this is the new and old tax rates