One in 10 take out health insurance to avoid Medicare levy surcharge - study

A comparison website reveals what triggers Australians into taking out health cover

One in 10 take out health insurance to avoid Medicare levy surcharge - study

Insurance News

By Mina Martin

Nearly one in 10, or 8.5% of Australians, take out health insurance to avoid the Medicare levy surcharge, finder.com.au has found in its March survey.

The Medicare levy is a flat 2% tax levied on Australians who do not have an appropriate level of private hospital insurance and who earn above a certain income, to help fund the health insurance program.

Recently, the government ditched the proposed Medicare levy surcharge hike to 2.5%, saving many Australians an additional $120-$1,500 in annual tax, finder.com.au said.

The comparison website's survey of more than 1,000 Australians also revealed the major triggers for Australians to get their health cover:

  • To avoid the Medicare levy surcharge after earning an income of more than $90,000 for a single or $180,000 for a couple;
  • To avoid the Lifetime Health Cover loading for those who are under 31 years of age,
  • To get insured for those who turned 25 or are graduating university, when they can no longer be covered by their parents’ policy

 

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