Sunday, December 20, 2009

Free Private Health Insurance

A contempo address advised by www.iselect.com.au has apparent that humans after clandestine bloom allowance are paying on boilerplate an added $614 a year in tax through the Medicare Levy Surcharge. Over the endure 9 years it is estimated that taxpayers accept paid a whopping $1 Billion dollars in added tax buy not accepting acceptable Private Health Insurance.

Melbourne, Vic -- Iselect.com.au has afresh advised what Australians are paying in added tax accompanying to Private Health Insurance. A contempo address appear by the ATO has apparent that humans after clandestine bloom allowance are paying on boilerplate an added $614 a year in tax through the Medicare Levy Surcharge. Over the endure 9 years it is estimated that taxpayers accept paid a whopping $1 Billion dollars in added tax buy not accepting acceptable Private Health Insurance.

The irony is that Private bloom Insurance can amount beneath than the tax itself.

going after Private bloom allowance is bad for the hip pocket. We acquisition that in the all-inclusive majority of cases humans in actuality save money by demography out acceptable clandestine bloom insurance. Many humans will be in for a abrupt abruptness if they do their tax this year in abounding cases humans end up in the atramentous with clandestine bloom allowance or can opt for a added absolute hospital and account action for little or no absolute out of abridged expense Each July we accept a blitz of barter advancing to us afterwards they accept got the tax acquittance or if they accept just got aback from their accountant. Usually it’s not until again that they realise that they could accept in actuality adored money. Many humans go through the action of analytic for every individual tax answer just to acquisition that their acquittance is wiped out by the Medicare Levy Surcharge. Back in 1997 if the customs was aboriginal alien it was advised ambiguous that a $50,000 was in actuality a top income. Average balance accept risen by up to 20% back again and yet the customs is still bound in at $50,000 for singles and $100,000 for families admitting 9 years traveling buy. At iselect.com.au we acquisition that humans are generally actual afraid if they apprentice that accepting clandestine bloom allowance in actuality saves them money. Who pays the Medicare burden Surcharge?

All taxpayers pay a 1.5% Medicare levy, about if your individual and earning added than $50,000 or a ancestors earning added than a accumulated assets of over $100,000 you authorize for the added 1% Medicare Levy Surcharge. Latest stats announce that over 280,000 humans are abacus over $173 actor to the MLS Tax. ATO statistics lag two years abaft and Health Insurance Broker www.iSelect.com.au advance that this year some bisected a actor Australians will be affected.

Medicare Levy Surcharge (2004 stats appear April 2006)
     Taxpayers %   $m     Amount   Average

Male   181,506   64.2   120   69.4   662
Female   101,169   35.8   53   30.6   528
Total   282,675   100.0   173   100.0   614

In 2004 (ATO alone absolution this abstracts anniversary April which is 2 years old) a absolute of 282,675 taxpayers were accountable to pay the Medicare burden surcharge, costing them $173 actor in total. This translates to an boilerplate of $614 per person. On boilerplate males paid $662, while females paid $528. Roger McBride from iSelect.com.au, Australia’s arch Private Health Insurance agent said that “going after Private bloom allowance is bad for the hip pocket. We acquisition that in the all-inclusive majority of cases humans in actuality save money by demography out acceptable clandestine bloom insurance. Many humans will be in for a abrupt abruptness if they do their tax this year”.

$50,000 is not advised a top assets for abounding and the government has not indexed this for aggrandizement back introducing the customs some 8 years ago (1997). In abounding cases people’s assets which may accept been $45,000 endure year may accept angled over the (SINGLE) $50,000 beginning or they may accept had a accomplice acknowledgment to the workforce and added their accumulated income. These humans will be bent out this banking year at tax time. McBride says “in abounding cases humans end up in the atramentous with clandestine bloom allowance or can opt for a added absolute hospital and account action for little or no absolute out of abridged expense”.

Example situations area humans are consistently accepting bent out

 

    Single (teacher) on $49,500 gets a $1,000 pay acceleration affective him to aloft $50,000 – he loses bisected of his pay acceleration in tax through the Medicare Levy Surcharge.
     
      Couple affiliated in March anniversary earning top $40’s get a 3.5% access during the year tips them into the ancestors beginning and they are hit with a $1,000 tax bill.
       
        Couple with alone one accomplice working, accept the added accomplice acknowledgment to the workforce angled them over the accumulated $100K akin and are hit with the $1000 additional tax bill in July.
         
          Man on $75,000, loses job for allotment of the year is now technically unemployed and has annulled his PHI. Because his becoming over $50k he is still hit with a $500 tax bill.

          The aloft are absolute examples of iSelect customers

          What Having Private Health Insurance will Save You:

          www.iselect.com.au accept provided the afterward table to authenticate the net aftereffect of the customs and the “real” amount of Private Health Insurance. If you fit into the chic below you will save.

          iselect.com.au Examples

          INCOME    TAX LIABILITY       COST OF         Real amount or
          Single    MLS          Eligible PHI     Annual Saving
                          AHM $250x2 exces     Money you get $50,001    $501      $453.00         $47.00
          $52,000    $520      $453.00         $67.00
          $55,000    $550      $453.00         $97.00
          $60,000    $600      $453.00         $147.00
          $75,000    $750      $453.00         $297.00

          Family Combined MLS   Eligible PHI   Annual Saving
          $105,000   $1,050   $906.00         $144.00
          $110,000   $1,100   $906.00         $194.00
          $115,000   $1,150   $906.00         $244.00
          $150,000   $1,500   $906.00         $756.00

          Source iSelect.com.au – Based on acceptable AHM hospital allowance prices (Melbourne) as at June 2005

          What Consumers Can Do

           

            To ensure you’re not hit by this tax next year you should crop out awning afore July 1.
             
              Review their assets and attending at what their absolute assets is acceptable to be in the banking year
               
                Shop about for acceptable amount bloom insurance, there are 38 bloom funds in the bazaar !
                Look at their out of abridged costs for account (optical, dental, physio etc) and accede abacus and account action that will be amount able for them.
                 
                  Remember that is a lot of cases (refer table) you will in actuality be bigger off and get clandestine bloom allowance for beneath than it will in actuality amount you in tax.
                  Some Statistics


                   

                    Only 43% of the citizenry is covered by Private Health Insurance
                     
                      This year the amount of humans that are accepted to be hit with the Medicare burden Surcharge is accepted to acceleration essentially to about 500,000 Australian Taxpayers.
                       
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