Private ruling: Private health insurance tax offset
Published: August 2014
Ruling period: Income year ended 30 June 2014 | Income year ended 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Can you claim the private health insurance tax offset in the 2014/15 income year for premiums pre-paid in an earlier financial year? | A1: No

Relevant facts and circumstances: You pre-paid premiums for year x in the previous financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 61-205(1)(a)

Reasons for decision: Summary: The private health insurance (PHI) rebate is an amount the government contributes towards the cost of your private health insurance premiums. Your eligibility to receive a PHI rebate will depend on your single or family income for surcharge purposes. You can either receive this rebate upfront through a reduction in the cost of your premiums from your insurer or in the form of a refundable tax offset when you lodge your tax return. Paragraph 61-205(1)(a) of the Income Tax Assessment Act 1997 provides the following requirement in regards to claiming the private health insurance tax offset: a premium, or an amount in respect of a premium, was paid by you or another entity during the income year under a *complying health insurance policy in respect of a period From the words 'was paid by you or another entity during the income year' it is clear that claiming the offset is only available in the year that the premiums are paid. Consequently if your private health insurance premiums were paid in a previous financial year (that is, prepaid) you cannot claim the offset in the current financial year. For example, in your situation x premiums were paid in x, you cannot claim the offset in your x tax return