Rebatable amount of health insurance policy to be capped

Nov 23, 2012

The 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO) has proposed that the government's rebate applied to private health insurance will be calculated using commercial premiums as at 1 April 2013 and then indexed annually by the lesser of CPI or the actual increase in commercial premiums. This will be used to determine an individual's private health insurance rebate. 

The rebatable amount may be less than the total cost of the policy that is charged by the health insurer. That is, the amount you receive a rebate on may differ from the amount paid for the policy.

I can already see this getting really messy in about ten years' time, can't you? 

If the proposal is passed then the measure will take effect from 1 April 2014.

For more information, refer to MYEFO media release (number 099-2012) issued by the Treasurer and Deputy Prime Minister Wayne Swan.

Tags: Accountant SydneyBudgetFamilyPersonal tax

Author: Mr Taxman

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