You could pay more for hospital cover depending on your age when you first take it out. If you delay joining until you are aged 31 or older, the Australian Government’s Lifetime Health Cover (LHC) loading means – depending on your age when you join – your premium could increase by at least 2% to a maximum of 70%. If you pay any loading, it’ll apply for 10 years of continuous cover so you won’t have to pay it forever (as long as you keep continuous cover for the whole 10 year period).
To avoid this loading you need to have taken out hospital cover by 1 July following your 31st birthday. You can minimise your loading by taking out hospital cover before or as soon as possible after you turn 30. For couples, any loadings are shared across both adults on the membership.
For more information, visit our 'Lifetime Health Cover' page.
The Australian Government Rebate on private health insurance (the ‘rebate’) is an initiative whereby the Government may contribute to a percentage of the cost of a member’s private health insurance. If you’re an Australian resident who qualifies for Medicare and holds private health insurance, you may be entitled to receive the rebate depending on your income. The level of rebate you’re entitled to is based on the age of the oldest person covered by the policy and by annual income.
The rebate is quick and easy to claim – you can choose to get it as a reduced premium or as a lump sum at tax time.
Did you know the Government's Medicare Levy Surcharge kicks in if you don’t have an appropriate level of private patient hospital cover but earn over $90,000 (for singles) or $180,000 (for couples/families)?* This means you may have to pay extra tax – more than the cost of some of our hospital covers. You should ask your tax adviser for more information or visit ato.gov.au
*The Medicare Levy Surcharge (MLS) is an additional levy on top of the Medicare Levy that is payable by Australian taxpayers who do not have an appropriate level of private patient hospital cover and earn above an income threshold. Thresholds are reviewed annually. On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples.. For more information go to ato.gov.au