Document ID: chunk:federal_register_of_legislation:C2025C00097:section:3:p1
Version: federal_register_of_legislation:C2025C00097
Segment Type: section
Provision Reference: s 3 (pt 1/18)
Character Range: 35263–38059

3                                       tier 3 earner                                his or her *singles tier 3 threshold                                                                               not applicable.

22‑35  Private health insurance singles thresholds
 (1) A person's singles tier 1 threshold for the 2021‑22 and 2022‑23 financial year is $90,000. This amount is indexed for later financial years under section 22‑45.
 (2) A person's singles tier 2 threshold for the 2021‑22 and 2022‑23 financial year is $105,000. This amount is indexed for later financial years under section 22‑45.
 (3) A person's singles tier 3 threshold for the 2021‑22 and 2022‑23 financial year is $140,000. This amount is indexed for later financial years under section 22‑45.
Note: A person may be a tier 1 earner, tier 2 earner or tier 3 earner if the person's income for surcharge purposes exceeds the applicable threshold for that tier: see section 22‑30.

22‑40  Private health insurance family thresholds
 (1) A person's family tier 1 threshold for a financial year is an amount equal to double his or her *singles tier 1 threshold for the financial year.
 (2) A person's family tier 2 threshold for a financial year is an amount equal to double his or her *singles tier 2 threshold for the financial year.
 (3) A person's family tier 3 threshold for a financial year is an amount equal to double his or her *singles tier 3 threshold for the financial year.
 (4) However, if the person has 2 or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999) who are children, increase his or her family tier 1 threshold, family tier 2 threshold and family tier 3 threshold for the financial year by the result of the following formula:

Example: If the person has 3 such dependants who are children, the person's family tier 2 threshold for the 2021‑22 and 2022‑23 financial year is:

Note: A person may be a tier 1 earner, tier 2 earner or tier 3 earner if his or her income for surcharge purposes exceeds the applicable threshold for that tier: see section 22‑30.

22‑45  Indexation
 (1) An amount mentioned in section 22‑35 is indexed for the 2023‑24 financial year, and later financial years, in accordance with this section.

Indexing amounts
 (2) Index the amount by:
 (a) firstly, multiplying the amount by the *indexation factor for the financial year under subsection (4); and
 (b) next, rounding the result in paragraph (a) down to the nearest multiple of $1,000.
Example 1: If the amount to be indexed is $105,000 and the indexation factor increases this to an indexed amount of $107,500, the indexed amount is rounded back down to $107,000.
Example 2: If the amount to be indexed is $140,000 and the indexation factor increases this to