Private Health rebates and the Medicare Levy Surcharge
From 1 July 2010, the 30% Private Health Insurance Rebate will be reduced for single taxpayers earning more than $75,000 and families earning more than $150,000 per year. To encourage higher income people to purchase private health insurance, the Medicare Levy Surcharge rate will be increased for singles earning above $90,000 and families above $180,000.
The changes to Private Health Rebate Rates and Medicare Levy Surcharge are summarised below:
| Private Health Insurance Rebate | Medicare levy Surcharge Rates | |||
| Income levels | Below 65 years | 65 years or over | 70 years or over | |
| $75,000 single or $150,000 family | 20% | 25% | 30% | 1% |
| $90,000 single or $180,000 family | 10% | 15% | 20% | 1.25% |
| $120,000 single or $240,000 family | 0% | 0% | 0% | 1.50% |
The Medicare for levy low-income thresholds will be increased in 2008-09 to the following:
- Individuals: $17,794
- Individuals in families: $30,025
- Pensioners below Age Pension age: $2,757
- The additional amount of threshold for each dependent child or student: $2,757
Medical Expense Tax Offset
You can claim a tax offset of 20 cents in every dollar of your net medical expenses (the medical expenses you have paid less any refunds you have received) over $1,500. This includes expenses relating to an illness or operation paid to legally qualified doctors, nurses or chemists and public or private hospitals.There is no upper limit on the amount you can claim.
Medical Expenses You Can Claim
Medical expenses which qualify for the tax offsets include:
- dentists, orthodontists or registered dental mechanics
- opticians or optometrists, including prescription spectacles and contact lenses
- a carer who looks after a person who is blind or permanently confined to a bed or wheelchair
- therapeutic treatment under the direction of a doctor
- medical aids prescribed by a doctor
- artificial limbs or eyes and hearing aids
- maintaining a properly trained dog for guiding or assisting people with a disability
- laser eye surgery
- treatment under an IVF program
Dependants for Medical Expense Claims
Medical expenses can only be claim for dependants who are Australian residents and include: you, your spouse (married or de facto), your children (adopted and stepchildren as well) under 21 years of age, any other child or student you maintained under 21 and 25 respectively (refer to Dependants and separate net income), a child-housekeeper if you claim a tac offset for them or an invalid relative, parent or spouse’s parent if you claim a dependant tax offset.
