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Edited version of your written advice
Authorisation Number: 1012933299619
Date of advice: 6 January 2016
Ruling
Subject: Health cover rebate
Question 1
Are you eligible for the government private health insurance rebate?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 2015
The scheme commences on
1 July 2014
Relevant facts and circumstances
You reside in Australia on a 457 visa.
You are entitled to Australian Medicare Benefits on a visitor reciprocal health care card.
Your health cover is an Overseas Visitors Cover.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 61-205,
Income Tax Assessment Act 1997 subsection 61-205(1),
Health Insurance Act 1973 section 3,
Health Insurance Act 1973 section 6,
Health Insurance Act 1973 section 6A,
Health Insurance Act 1973 section 7 and
Private Health Insurance Act 2007 part 2-2.
Reasons for decision
Section 61-205 of the Income Tax Assessment Act 1997 (ITAA 1997) provides the criteria for the private health insurance offset. Subsection 61-205(1) states you are entitled to a private health insurance tax offset for an income year if:
• a premium was paid by you or another entity during the income year under a complying private health insurance policy within the meaning of the Private Health Insurance Act 2007 (PHA 2007)
• You are a private health insurance incentive beneficiary
• each person insured under the complying health insurance policy during the period covered by the premium is, for the whole of the time he or she is insured under the policy during that period, an eligible person within the meaning of section 3 of the Health Insurance Act 1973 for Medicare benefits, or treated as such because of section 6,6A or7 of that Act.
The Private Health Insurance Ombudsman advises that an Overseas Visitors Policy is not considered a complying health insurance policy as per the definition in the PHA 2007.
It follows that an Overseas Visitors Policy does not provide private patient hospital cover within the meaning of section 61-205 of the ITAA 1997.
Application to your circumstances
You have an overseas visitor health insurance policy which is not considered to be a complying health policy by the Private Health Insurance Ombudsman.
You are therefore not entitled to a private health insurance rebate as you do not meet all of the criteria set out in section 61-205 of the ITAA 1997.
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