| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1012995802581
Date of advice: 8 April 2016
Ruling
Subject: Private Health Insurance Offset
Questions and answers:
Do you have to repay the private health insurance offset that you received in the year end 30 June 20XX because you were ineligible to receive it?
Yes.
Can you repay only the amount of the private health insurance offset that is in relation to your private health insurance coverage for the year end 30 June 20XX tax period since you prepaid for the next tax period and are now eligible to receive the offset?
No.
This ruling applies for the following period
Year ending 30 June 2015
This scheme commences on:
1 July 2014
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You and your partner made an advanced payment on your private health insurance for the year end 30 June 20YY.
Your partner received a redundancy payment during the year end 30 June 20XX which made you ineligible to receive the private health insurance tax offset.
You wish to pay back the relevant rebate amount pertaining to the year end 30 June 20XX as you are now able to claim the private health insurance tax offset for the year end 30 June 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 61-G
Private Health Insurance Act 2007
Reasons for decision
As you have incurred the cost of your private health insurance for the year end 30 June 20YY in the year end 30 June 20XX you will have to repay the full amount of the tax offset that you received during that year.
The private health insurance offset works by allowing you to claim amounts paid for private health insurance in the year that you incur the cost as is outlined in ATO ID 2004/713 - Private Health Insurance tax offset: premium for cover in another income year.
You cannot apportion the cost that you have incurred in relation to another tax period based on the period that the private health insurance will cover. In your circumstances you incurred private health insurance costs for both years in the year end 30 June 20XX and so the offset is only applicable in that year.