Make your clients aware of health insurance tax surcharges and incentives

The Medicare Levy Surcharge applies to Australian taxpayers who don't have private hospital cover and who earn above a certain income ($97,000 per year for singles and $194,000 for families in the 2024 - 2025 tax year). Those above this income threshold will have a surcharge between 1% and 1.5%, depending on household income level. This is on top of the Medicare Levy of 2%, which is paid by most Australian taxpayers. Your client will avoid paying the Medicare Levy Surcharge by holding an eligible private hospital insurance policy.

There are penalties for not taking out private hospital cover before age 31. If your client starts their hospital cover earlier in life and maintain it, they'll pay a lower premium each year compared to someone who starts their cover at a later age. The LHC is a charge of 2% per year added onto health insurance premium for each year after the age of 30 where they've not held private health insurance, starting on 1 July following their 31^st birthday. By taking out private hospital cover before they turn 31, your client can avoid Lifetime Health Cover loadings on their policy.

The Age-based Discount reduces the cost of starting private health insurance for people aged 18 to 29. AIA Health offers up to a 10% discount on eligible hospital policies. Members retain the discount until they turn 41 after which it's gradually phased out. 

The Private Health Insurance Rebate helps cover the cost of premiums and is based on age and taxable household income. Members can choose to claim reduced premiums throughout the income year or a refundable rebate when they lodge their tax return.

For the month of November we’re offering new AIA Health clients 4 weeks free when they take out an eligible hospital or combined hospital & extras policy. View full T&Cs.

 

Make a successful health insurance referral and you’ll receive a referral fee of 20% on the first year’s premium (plus GST), paid to your licensee once your client's policy becomes financial.
 

Refer your client today via the ‘Health Portal’ which is located on the AIA Adviser Portal