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  • Private health and your notice of assessment

    After you lodge a tax return, we'll send you a notice of assessment detailing the amount of tax payable or refundable. Depending on how much private health insurance rebate you’ve already claimed as premium reductions, your notice of assessment may show a private health insurance liability or tax offset.

    As your income for surcharge purposes increases, your private health insurance rebate may be reduced or you may not be entitled to any of this rebate.

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    Excess private health reduction or refund (rebate reduced)

    We calculate your correct entitlement to a private health insurance rebate when you lodge your tax return. Your entitlement to this rebate is income tested, which is based on your income for surcharge purposes.

    As we do not tell your income to your insurer, they may have given you too much or too little rebate.

    If you've received a larger rebate than you're entitled to, we will claim back the excess amount from you when you lodge your tax return. The amount will be shown at the Excess private health reduction or refund (rebate reduced) label on your notice of assessment.

    If you want to avoid the liability in future, you can contact your insurer and nominate a new rebate tier.

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    Avoiding a liability in the future

    Your private health insurer may be giving you an upfront private health insurance rebate by reducing your premiums. However, if your income for surcharge purposes is above the thresholds, and you receive too much rebate (premium reduction), you will incur a private health insurance liability when you lodge your tax return.

    Estimate your income for surcharge purposes for the financial year and contact your private health insurer to nominate a new rebate amount, if you want to avoid a private health insurance liability. You may choose to receive less rebate upfront as a premium reduction but then avoid receiving a private health insurance liability when you lodge your tax return.

    If you overestimate your income, and don't claim your full rebate as a premium reduction, we will pay you any remaining rebate as a refundable tax offset when you lodge your tax return.

    There are no penalties for making an incorrect rebate nomination with your health insurer.

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    Last modified: 27 Jun 2019QC 49968