What is Lifetime Health Cover loading?
If you do not have hospital cover with an Australian registered health fund by July 1st following your 31st birthday you could be charged a 2% increase in premiums for every year without cover should you take out health insurance at a later point. This can amount to a loading of up to 70%. To avoid this simply take out hospital cover by July 1st following your 31st birthday.
What is the Medicare Levy Surcharge?
If your income level exceeds the thresholds outlined below and you don’t have appropriate hospital cover you may have to pay an additional 1%-1.5% tax on Medicare usage. If you earn above the Surcharge threshold you can avoid having to pay the levy by holding health insurance. If you are unsure we recommend contacting your financial advisor to discuss your specific needs.