Private ruling: Private health insurance rebate
Published: April 2013
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you eligible to claim the private health insurance rebate? | A1: No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are in Australia on a bridging visa awaiting an aged parent visa. You are not eligible for Medicare and have therefore taken out private health insurance. You were informed by your private health insurer that you are not eligible for the private health insurance rebate.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 61-205(1). | Private Health Insurance Act 2007. | Health Insurance Act 1973 Section 3.

Reasons for decision: Summary: Subsection 61-205(1) of the Income Tax Assessment Act 1997 (ITAA 1997) states; if you are an individual (other than an individual in the capacity of an employer), you are entitled to a tax offset for the 2007-08 income year or a later income year if: (a) a premium, or an amount in respect of a premium, was paid by you, or by your employer as a fringe benefit for you, under a complying private health insurance policy (within the meaning of the Private Health Insurance Act 2007 (PHIA 2007)), on or after 1 July 2007, and (b) the premium, or amount in respect of a premium, was paid during the income year, and (c) each person insured under the complying health insurance policy during the period covered by the premium or amount is, for the whole of the time that he or she is insured under the policy during that period, an eligible person within the meaning of section 3 of the Health Insurance Act 1973 , or treated as such because of section 6, 6A or 7 of that Act. An eligible person means an Australian resident or an eligible overseas representative ( Health Insurance Act 1973 section 3). A 'complying health insurance policy' is generally a policy which provides hospital cover, ancillary cover or combined cover. A complying policy also requires each person and their dependent children to be eligible to claim benefits under Medicare (section 63-10 of the PHIA 2007 ) In your case you are ineligible to claim benefits under Medicare. Your policy is therefore not a complying health insurance policy. Accordingly, you are not entitled to the private health insurance tax offset.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.