A package of three Bills dealing with reforms to private health insurance have been introduced into parliament.
The Bills include amendments allowing for increased maximum voluntary excess levels for products providing individuals an exemption from the Medicare levy surcharge. The Bills are:
- Private Health Insurance Legislation Amendment Bill 2018
- Medicare Levy Amendment (Excess Levels for Private Health Insurance Policies) Bill 2018, and;
- A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Amendment (Excess Levels for Private Health Insurance Policies) Bill 2018.
Insurers will be able to offer products with increased maximum voluntary excess levels that exempt the holder from the Medicare levy surcharge. This will be enabled by amendments in the three Bills which contain amendments to the Private Health Insurance Act 2007, A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 and Medicare Levy Act 1986.
Individuals will have the opportunity to purchase products with a larger excess, in return for lower premiums. They will need to migrate to a policy that has an excess no more than the new maximum in order to be eligible for the Medicare levy surcharge exemption.
For more information, please contact Custom Accounting.
Source: ATO
