Save tax with the right nib cover
If your taxable income is above the Medicare Levy Surcharge thresholds, and you do not have an appropriate level of private hospital cover, you may have to pay the Medicare Levy Surcharge. This is an additional 1% in tax (on top of the Medicare Levy we all have to pay).
The good news is you can avoid the Medicare Levy Surcharge (and pay less tax) by joining an nib health cover with a hospital excess of $500 or less for singles, and $1,000 or less for couples/families, per calendar year.
If you took out hospital cover before 24 May 2000, you’ll be exempt from the surcharge regardless of the nib excess you selected, as long as you remain on your current health cover and excess level.
If you suspend your policy for any period of time, you will not qualify for this tax break and the Medicare Levy Surcharge will apply.
If you’re unsure whether your nib health cover meets Medicare Levy Surcharge requirements, please call us on 13 14 63.
For more information about the Medicare Levy Surcharge
2009 Federal Budget proposed changes update
The Senate has rejected the Federal Government's proposal to means test the Private Health Insurance 30% Rebate and increase the Medicare Levy Surcharge (MLS).