TamTam Posted October 15, 2018 Report Share Posted October 15, 2018 Hi all Can you kind folk help me understand the medicare rebate topic and loading for private cover. I know that if you earn $180 000 and above as a family then you need to take out private cover or risk penalties plus you need to take out private cover within 12 months of getting medicare else you risk 2% loading per year for every year you're older than 30 should you ever wish to go onto private. Is my thinking at least partially correct? Quote Link to comment Share on other sites More sharing options...
Bonny Posted October 15, 2018 Report Share Posted October 15, 2018 Hi Tam Tam I think you are almost correct, but it’s not really that you ‘risk penalties ‘. I believe if you do not have Private Cover (over the earnings threshold), you pay more tax. It is their way of basically incentivising/forcing people to take private cover. When you take private cover you need to state to the Medical Fund what ‘tier’ your income falls into, and your premiums will be adjusted accordingly. Here is the Medibank Link, if it helps. https://www.medibank.com.au/health-insurance/understanding-health-insurance/australian-government-rebate/ If I sound slightly confused it’s because I am also a bit unsure how it all works. We have an accountant doing our tax and so maybe others can clarify further. Quote Link to comment Share on other sites More sharing options...
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