Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1012678288587

Ruling

Subject: Private health insurance tax offset

Question 1

Can you claim the private health insurance tax offset in the 2014/15 income year for premiums pre-paid in an earlier financial year?

Answer

No

This ruling applies for the following period(s)

Income year ended 30 June 2014

Income year ended 30 June 2015

The scheme commences on

1 July 2013

Relevant facts and circumstances

You pre-paid premiums for year x in the previous financial year.

Relevant legislative provisions

Income Tax Assessment Act 1997 paragraph 61-205(1)(a)

Reasons for decision

The private health insurance (PHI) rebate is an amount the government contributes towards the cost of your private health insurance premiums. Your eligibility to receive a PHI rebate will depend on your single or family income for surcharge purposes.

You can either receive this rebate upfront through a reduction in the cost of your premiums from your insurer or in the form of a refundable tax offset when you lodge your tax return.

Paragraph 61-205(1)(a) of the Income Tax Assessment Act 1997 provides the following requirement in regards to claiming the private health insurance tax offset:

From the words 'was paid by you or another entity during the income year' it is clear that claiming the offset is only available in the year that the premiums are paid. Consequently if your private health insurance premiums were paid in a previous financial year (that is, prepaid) you cannot claim the offset in the current financial year. For example, in your situation x premiums were paid in x, you cannot claim the offset in your x tax return

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).