A recent Galaxy survey has found 53% of the 2.4 million members affected by the changes to the private health insurance rebate have not updated their income details with their private health insurance provider.
On 1 July 2012, the Government cut the private health insurance rebate from 30% - in some cases to nil.
The table below shows the income levels at which the rebate will reduce.
What many people have failed to realise is that it is their responsibility to notify their private health insurance provider of their income so their premiums can be adjusted to reflect the lower rebate.
If you (or your family) fit into either the Tier 1, 2 or 3 categories, you need to advise your private health insurance provider ASAP to avoid a tax bill when the Government moves to recoup the overpaid rebate.
If you have any questions regarding the application of these changes to your situation, please contact Ellingsen Partners.