If you are single and earn more than $90,000 a year ($180,000 for couples) the Federal Government thinks you’re earning enough to afford Private Hospital cover with a Health Fund. If you’re not purchasing Private Health Insurance, the Federal Government (whether you know it or not) will hit you with an additional tax called the Medicare Levy Surcharge.
The Medicare Levy Surcharge is a additional tax taken from your tax return each financial year and is payable at tax time. This tax starts at an additional 1% and can grow up to 1.5%) if you are earning more than $140,000 as a single (or more than $280,000 for a family). If you are considered a high income earner, you’ll be hit with a minimum $900 in extra tax through the Medicare Levy surcharge if you don’t have Private Hospital cover.
Consider these three facts:
- If you are considered a high income earner and you aren’t purchasing Private Hospital cover, you will be charged the Medicare Levy surcharge, which costs as a minimum, $900. This money is taken out of your tax return.
- If you take out Private Hospital cover, you don’t have to pay the Medicare Levy Surcharge.
- Phoenix Health Fund’s YoungSavers for Singles cover policy has a starting cost for a high income earner at $1144.80 per year, and includes a great Private Hospital cover as well as a generous Extras package.
So let’s recap on your options:
Option 1: Earn $90,000 p.a. + no private health cover = $900 Medicare Levy Surcharge paid at tax time
Option 2: Earn $90,000 p.a. + Phoenix’s YoungSavers for Singles Cover = $1144.80 and you can avoid paying the Medicare Levy Surcharge
Virgil was famously quoted saying “the greatest wealth is health” and one can’t fault him there! So why not use your potential tax dollars wisely, be proactive and invest back into your Health… because it’s the greatest wealth that you will ever possess.
Phoenix Health Fund is a Private Health Insurer that has been offering its members affordable and great quality health insurance since 1953. To speak to one of our friendly team, simply call 1800 028 817 and we will be happy to assist you.