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Edited version of your private ruling
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Ruling
Subject: Medicare levy surcharge
Question
Does your overseas health insurance policy qualify as a complying health insurance policy for Medicare levy surcharge (MLS) purposes?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commenced on
1 July 2010
Relevant facts
You often travel overseas for work and have an overseas health insurance policy which provides you with worldwide medical coverage including Australia. Your policy includes hospital cover.
The overseas insurer does not appear on the Private Health Insurance Administration Council website.
Relevant legislative provisions
Medicare Levy Act 1986 Subsection 3(5).
Reasons for decision
Summary
Your private health insurance policy held with the overseas insurer does not qualify as a complying health insurance policy for MLS purposes.
Detailed reasoning
The MLS is in addition to the Medicare levy. The MLS is payable if you or your dependants did not have an appropriate level of private patient hospital cover for the whole of the relevant income year and your taxable income was above the surcharge threshold amount.
An appropriate level of private patient hospital cover is cover provided by an insurance policy issued by a registered health insurer for hospital treatment in Australia.
Subsection 3(5) of the Medicare Levy Act 1986 (MLA 1986) states that a person is covered by an insurance policy that provides private patient hospital cover if the policy is a complying health insurance policy (within the meaning of the Private Health Insurance Act 2007 (PHIA 2007)) that covers hospital treatment.
The Private Health Insurance Administration Council (PHIAC) administers the PHIA 2007 and maintains on its website (www.phiac.gov.au) an up to date record of all private health insurers providing complying policies.
Your overseas insurer does not appear on the PHIAC's website. Therefore their policy is not a complying health insurance policy within the meaning of the PHIA 2007 and does not satisfy the requirement of subsection 3(5) of the MLA 1986.