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Private Health Insurance – Should you pre-pay your premiums by 30 June 2012? Posted on October 9, 2018
As per the Australian Taxation Office, the income thresholds for the 2012/13 tax year are shown below:
The family income threshold is increased by $1,500 for every child after the first child.
Note, the definition of “income” for this test is the sum of your:
1) Taxable income (including net capital gains, and including the net amount on which family trust
distribution tax has been paid).
2) Reportable fringe benefits (as reported on your payment summary).
3) Total net investment losses (both net financial investment losses and net rental property losses).
4) Reportable super contributions (includes reportable employer super contributions and deductible
personal super contributions.
5) Exempt foreign employment income.
6) (If you are aged 55-59 years old) any taxed element of a super lump sum, other than a death benefit,
which you received that does not exceed your low rate cap.
You might save hundreds or thousands of dollars in rebates!
If your “income” in 2012/13 puts you in either of the Tier 1, 2, or 3 categories above, then you could save hundreds or thousands of dollars by pre-paying your private health insurance premiums. Pre-paying means that you pay your premiums, for some or all of the 2012/13 tax year, on or before 30 June 2012.
The ATO has confirmed that you can effectively receive the current 30% rebate for any private health insurance premiums that you pre-pay by 30 June 2012.
If you are interested in making significant savings from these pre-payments or would like to know more, click here to contact us.