• End of Financial Year tips – Join a health fund, or prepay your premiums!

    Posted on August 2, 2012

    Here’s our End of Financial Year tips for getting the most bang out of your health buck!

    1. If you don’t have health insurance:
    Save $$ on your tax – Avoid the Medicare levy surcharge. The Medicare Levy Surcharge is levied on tax payers who do not have private hospital cover and who earn above a certain income ($84,000pa for singles, $168,000 for families). The surcharge is between 1% and 1.5% which equates to a minimum of $840 that the tax office will penalise you if you don’t have a health fund. You may as well use that $840 to join a fund and get the benefits of having health insurance.

    2. If you are thinking about joining health insurance:
    Now is the best time to join a health fund – There is probably no better time to join than this time of the year, as it seems most health funds are waiving the one/two month waiting periods on their general cover, and some are even giving one month’s free cover on top of this! Check out this special offer fromMedibank Private http://www.medibank.com.au/healthcover/special-offer.aspx

    3. If you currently have health insurance:
    Act now to save $$ next year! From 1 July 2012, the Government will means test the private health rebate. If you earn over $84,000 as a single, your rebate will reduce as follows:

    Under $84,000 – 30%
    $84,001-$97,000 – 20%
    $97,001 – $130,000 – 10%
    Over 130,001 – 0%

    So for a person earning over $130,00, you will cease to receive a discount on your health fund premiums. However, if you act now and pre-pay your yearly Private Health premium before the end of June, and receive the full 30% private health rebate if you act now. Contact your health fund directly for more information. Earlier cut-off dates for admin may apply.

    Information provided in this post is general in nature and does not constitute personal or financial advice. We recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs.