Latest news with #privatehealthinsurance
Daily Mail
14 hours ago
- Health
- Daily Mail
The fresh cost of living blow every Australian paying for private health insurance needs to know about
Australians forking out for the highest level of private health insurance cover are facing double-digit hikes to their premiums. Health Minister Mark Butler this year approved a 3.73 per cent average increase in private health care premiums, that came into effect on April 1. But Australians seeking gold cover have been dealt a major cost of living blow with average, annual hospital insurance soaring by 13.8 per cent, or more than three times the government-approved average increase, a Canstar analysis showed. This equates to $442 extra a year for individuals, who are now paying $3,653 a year for the top-tier cover, which typically includes in-hospital procedures listed on the Medicare Benefits Schedule and ambulance cover. Canstar data insights director Sally Tindall said private health insurers were legally allowed to hike their premiums by double-digit figures. 'The government-approved 3.73 per cent premium price rise was always just an average, not a cap,' she said. 'What we can now see is that some policies have risen by up to 13.8 per cent – particularly for those with the top level of cover. 'The reality is, Australians who have the top level of cover have been hit with the highest price hikes.' Canstar calculations showed an individual with gold cover could save $1,296 a year, and slash their annual bill by a third to $2,357 by switching from an average to the lowest-priced product. A family with gold cover could save $2,493 a year, also slashing their annual bill by a third, by switching from an average to a lower-priced product. This would see their annual bill fall from $7,207 to $4,714. 'If you haven't done a health check on your policy since the April price rise, now is the time to do one,' Ms Tindall said. 'Find out exactly how your premium sits against the lower-cost insurers and if there's a cheaper option for the same level of cover, consider making a switch.' Switching to the same cover could also eliminate the long waiting periods to get coverage for elective surgery. 'What a lot of people don't realise is that if you are switching to the exact same level of hospital cover, you will not have to re-serve any additional waiting periods, which minimises the risk,' she said. Private health insurance costs increased by 4.7 per cent for silver cover. This worked out at an extra $83 a year, or $1,838 overall, for a premium product without birth-related services. But the increases were much more moderate for lower levels of cover. Bronze saw a small 1.5 per cent increase, with the $20 annual change taking premium costs to $1,336 for a product offering hospital cover but not benefits for those with children. Basic cover in fact fell by 0.6 per cent or $7 to $1,070, with this product catering to younger, healthier people offering coverage for accidents. While headline inflation has moderated to 2.4 per cent, overall health care costs rose by 4.1 per cent in the year to March. More than half of Australia's 27.3million people are covered by private health insurance, either individually or as part of a family package.
Yahoo
3 days ago
- Health
- Yahoo
$8,000 ATO tax change for millions of Aussies in weeks: Good news'
The threshold to pay the Medicare Levy Surcharge will increase in weeks for the third year in a row. Taxpayers are being urged to consider whether they need to take out private health insurance now, or risk being hit with an extra tax for every day they are uninsured. The Medicare Levy Surcharge is applied by the Australian Taxation Office (ATO) to those who earn over a certain amount and don't have hospital insurance. From July 1, the singles threshold will increase from $97,000 to $101,000, while the family threshold will go from $194,000 to $202,000. Tax Invest Accounting director Belinda Raso told Yahoo Finance the increase was 'good news' for taxpayers. The increase means singles will be able to earn an extra $4,000 a year before the surcharge is applied, while families will be able to make an extra $8,000. RELATED Biggest ATO tax return mistakes costing Aussies hundreds: 'Extra $1,000' ATO, Centrelink warning over $100 million Powerball lottery win Centrelink cash boost coming from July 1 for millions of Aussies 'They don't go up every year, but they have for the past three years,' Raso said. Raso said now was the time for taxpayers to consider whether they wanted to take out private health insurance to avoid the tax next financial year. 'These decisions can cost or save you thousands of dollars over the next financial year. We all know private health insurance keeps going up so now is the time to start deciding what will be best for you,' she said. The cost of health insurance will depend on factors like your age, the type of policy you take out and the coverage level. Finder found the average single Aussie pays $165 per month for health insurance, which works out to $1,980 a year. Basic policies, the lowest level of cover, cost $78.36 on average, or $940.32 a year. Raso said some people would not want to take out private health insurance, and that was fair enough, but it would mean you would have to pay an additional tax. 'So you're just paying a tax for no reason, you may as well pay for something,' she said. The Medicare Levy Surcharge is a tax applied to people who do not have private hospital cover and earn above a certain income. It is paid on top of the Medicare levy, which is 2 per cent. The tax is between 1 and 1.5 per cent, depending on your income. If you are a family or couple with a combined income over the threshold, you must hold hospital cover for you, your partner and your dependents to avoid the surcharge. The family threshold covers couples with no children, couples with children, and single-parent households. If you have reached the threshold for this financial year, the bad news is you can't take out a health insurance policy now to avoid the charge. 'You're going to be liable for the surcharge for the days that you were not covered by the private health insurance,' Raso explained. Raso said it was 'very hard' to avoid paying the surcharge if your income had hit the threshold. That's because the definition of income is broader than just your taxable income. 'A lot of people don't realise that reportable fringe benefits will get them in most cases, because they get grossed up,' Raso said. Income also includes investment losses added back in and salary sacrifice added back in. Raso said that was why it was important to consider your total income, consider the cost of taking out insurance and see whether it was worth getting insurance to avoid the charge next in retrieving data Sign in to access your portfolio Error in retrieving data
