How Hospital Cover Could Help You Avoid Tax Time Pain
Almost 200,000 Australians fork out hundreds or thousands of dollars at tax time because they don’t have adequate health cover and earned over a certain amount.
According to the Australian Tax Office 196,807 Australians paid the Medicare Levy Surcharge and were collectively liable for more than $257 million for the 2016-17 financial year.
Most Aussies pay a Medicare Levy to help fund the public system at tax time, but if you earn over $90,000 as a single or $180,000 for a couple and don’t have a hospital policy, you will pay additional tax known as the Medicare Levy Surcharge.
9Saver Campaigner Joel Gibson said the average amount of extra liability is $1,200 per person which is around the same price as a mid-range singles policy.
“You can avoid that charge by having a simple hospital policy with the added benefits of private health, such as the ability to choose your own doctor, have your own room and skip the public hospital waiting list if you need elective surgery,” said Gibson.
Joel recommends getting a quote and comparing it to the extra tax you might pay if you don’t have a hospital policy in order to make an informed decision.
Getting a quote can be done online via a number of comparison websites as well as the 9Saver website, which hosts special deals from providers. Check out the current offer here.
However, Gibson adds those who want to avoid the Medicare Levy Surcharge are not the only ones to benefit from this deal.
“Even if you already have Health Insurance, there are considerable savings that could be had. Saving on your Health Insurance bill could mean more money to spend on other things in life such as family and friends,” he said.
Here are some simple ways to save on Private Health Insurance:
- If you’re fit and healthy, consider increasing your excess to the new maximum of $1500 for couples/families or $750 for singles. This can save up to $350 from a family’s annual premium, says the Government (but remember, you will pay more if you need a private hospital admission).
- Use the new Gold, Silver, Bronze or Basic tiers to compare. All policies will soon be compared by these tiers. This will make it easier for you to shop around based on price.
- Cash in if you’re young. Some funds will now offer age-based discounts of up to 10% for adults aged under 30.
- Join 9Saver and access Special Offers for households who want to save on their health cover.