Private ruling: Private health insurance rebate
Published: June 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Is your family income used to calculate a private health insurance rebate? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 61-335 | Private Health Insurance Act 2007 Section 22-30

Reasons for decision: Summary: The amount of your private health insurance tax offset is based on your family status and the tier in which you are assessed. Subsection 22-30 of the Private Health Insurance Act 2007 deals with the various tiers. The family tiers apply in circumstances where 'on the last day of the financial year, the person is married. Couples/families whose income for surcharge purposes is between $210,001 and $280,000 in the 2014-15 financial year who hold a complying private health insurance policy are considered to be Tier 2. If you are the only adult covered by the policy, your share of the private health insurance policy for rebate purposes is the total cost of the policy. Your entitlement is based on the age of the oldest person covered by the policy. In your case, you are the only person covered on your policy. Therefore, the rate you are entitled to will be in accordance with your age.

Relevant facts: You and your spouse hold two separate private health insurance policies. | Your family income will be between $210,001 and $280,000 in the 2014-15 financial year. | You are less than 65 years of age. | Your spouse will turn 65 years of age in 2014.