Who does this item apply to?

Complete this item if:

• You, or your employer on your behalf, paid a premium for a complying private health insurance policy

and

• you have not already claimed a full private health insurance rebate for premiums paid, either as reduced premiums through the health insurer or as cash or cheque rebates from Medicare.

You need to know

The private health insurance tax offset is worked out as a percentage of the premium paid to a registered health insurer for a complying private health insurance policy. The percentage of tax offset you may be entitled to claim is determined by the age of the oldest person covered by the policy (see How the tax offset works). The tax offset is not affected by your level of income.

You are eligible for the tax offset only if every person who is covered by the policy is eligible to claim benefits under the Medicare system. Your health insurer should have sent you your private health insurance statement showing the details of your tax offset level.

Check the statements from all of the health insurers you paid premiums to. If the amounts at G on your statements are $0, you have already received your full entitlement and you do not need to read any further in this item.

Claiming the tax offset

The tax offset can be claimed as:

• a reduction in your private health insurance premium through the health insurer
• a cash or cheque rebate from Medicare
• a refundable tax offset at the end of the income year through your tax return, or
• a combination of all the options, each for a different period.

You can claim the tax offset for each period under one method only, that is, if you have already received the tax offset for a period by way of a reduction in your premium through the health insurer or as a rebate from Medicare, you cannot now claim a tax offset for that period.

How the tax offset works

The tax offset is based on the premium you paid, or your employer has paid for you, for a complying private health insurance policy. You work out your entitlement at 30%, 35% or 40% of the premium paid, depending on the age of the oldest person covered by the policy and the number of days this person was in this age category.

Age of the oldest person covered by the policy*	Amount of tax offset
Less than 65 years	30% of the amount of premium paid
65 years to under 70 years	35% of the amount of premium paid
70 years or over	40% of the amount of premium paid
*If the oldest person moved into the next age group during the year, the tax offset is based on the number of days that person was in each group. Your health insurer will calculate this automatically.

Once the policy becomes eligible for the higher tax offset, it will retain this eligibility even if the person who established the eligibility comes off the policy. Additionally, the eligibility continues even if the policy holder changes health insurers or policies after this. However, this ongoing eligibility for the higher rate will be affected if a new person is added to the policy after the person who established the eligibility leaves the policy. In this circumstance you should contact your health insurer for more information on how your tax offset level will be determined.

Did you receive a private health insurance statement from your health insurer?

Your health insurer should have sent you a statement showing the premium you have paid. If you paid a premium for more than one policy, you should have received a statement for each policy.

If you did not receive a statement for one or more of the policies you have paid for, you should contact your health insurer and request one.

What you will need

• Your private health insurance statement
• The amount of any cash or cheque rebate received from Medicare for your private health insurance