Changes to private health insurance rebate and Medicare levy surcharge

Income test thresholds for 2012-13

The private health insurance rebate and Medicare levy surcharge are income tested against the income thresholds in the table below.

Table 1: Income thresholds

	Base tier (no change)	Tier 1	Tier 2	Tier 3
Singles	$84,000 or less	$84,001-97,000	$97,001-130,000	$130,001 or more
Families*	$168,000 or less	$168,001-194,000	$194,001-260,000	$260,001 or more
Private health insurance rebate entitlement
Under 65 years old	30%	20%	10%	0%
65-69 years old	35%	25%	15%	0%
70 years old or over	40%	30%	20%	0%
Medicare levy surcharge
Rate	0.0%	1.0%	1.25%	1.5%

* The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child.

The income thresholds are indexed annually.

The legislation to income test the private health insurance rebate started on 1 July 2012 and only applies to premiums paid on or after that date.

We determine your private health insurance rebate entitlement for the income year based on information provided on your tax return.

Sections within Changes to the private health insurance rebate

• Income test thresholds for 2012-13
• Income that the test applies to
• Estimating your income
• Income testing on your share of the policy
• What income threshold applies