The Australian Government Pushes for Private Health Care
The Australian government has begun encouraging individuals, particularly those over age 31, to take out a private health insurance. People over the age of 31 need to take note as Government legislation called Lifetime Health Cover loadings can start effecting individuals over this age. Lifetime Health Cover imposes a 2% loading on those that choose not to take out a private health care policy by July 1, after their 31st birthday.
Another law the government has created to encourage private citizens to reduce the burden on the public healthcare system is the Medicare Levy Surcharge. While most tax payers, pay a 1.5% income tax levy for Medicare, those that exceed certain income requirements pay an additional 1 – 1.5% on top of the existing tax. This is designed to encourage those who can possibly afford Private Health Insurance to take out a policy to help relieve stress on the public system. In many cases, the cost of the premium could be less or roughly the same as the cost of the tax.
The Government does however offer a Rebate on Private Health Insurance depending on your income and age, this rebate can be quite a significant amount, particularly for for someone over the age of 70.