PeterDeng

Can personal medical issurance reduce income tax? If so, how does it work?

Is it related with Medical Levy or Medical Levy surcharge?

How can i find a suitalbe medical issurance for myself?
Do i need to get a agent to help me? Any good online information on this?

Thanks in advance.

EvannTel

Yes, if you earn enough to attract the Medicare Levy Surcharge which is 1% of salary.
This and you other info relevant to your questions is all on the ATO website.

joho

Ok your monthly payments cannot be offset against your income. Everyone pays medicare levy but if you earn above a certain amount (sliding scale depending on how many kids etc) then you get stung an extra 1% but if you have private health you put this in your tax return and the 1% isnt charged to you.

Medical expenses ,if you join the saftey net then once your family hits the threshold approx $1500 in any year you get 20%(I think) of anything over and above this amount back in your tax retrun, same for any out of pocket exenses related to medical, optical, dental (I think). You need to check all this but thats a brief outline, I am sure there is heaps more you can do, the tax offsets are better here.

Jo

ABCDiamond

That $1,500 threshold has now changed to $2,000 from July 2010.

Loch Lomond

Ridiculously complicated...that's all I'd like to add about the Australian Health System.
However I'll bring this up in defence of the public health system. Mrs LL needed some major eye surgery recently, it was deemed elective. Had she gone private, we'd still be waiting. She had the surgery in Fremantle 8 weeks ago.

Wol

>>Ridiculously complicated...that's all I'd like to add about the Australian Health System.<<

Absolutely correct!

ABCDiamond

But OK once you get the hang of it

• You pay your Medicare Levy, or not if you don't earn enough.
• You visit your doctor, Free for some, but a few dollars for others.
• You have tests done at testing places, Free for some, but a few dollars for others.
• You visit a specialist, Free for some, but charged for most, with a small rebate.
• You go to hospital, Free for most, but charged for others, especially if you have insurance ....

Not too complex, unless you are new to the system..

Wol

Beg to differ - I have had six years of the system, several hospital admittances and many specialists and referrals. The charging system is Byzantine, and very much at the option of the people involved. It's possibly better in the cities, but rural NSW for one is impossible to negotiate and stay sane.

ABCDiamond

I've never lived rural, so my experience excludes that. But i've also had 20 years to get used to the ins and outs I suppose

PeterDeng

In order to avoid the Medical Levy Surcharge, i need to have the private health insurance for the WHOLE year or it is OK if enroll from the middle of the year before the income tax return in July?

PeterDeng

My wife and kid are not in OZ, my wife works and pays the local tax there.
I am working in OZ. when i consider the medical levy surchage, i am considerd as a family or i am considred as a single person?

Pollyana

I've merged your three threads together as it makes them easier to follow and answer.

ABCDiamond

You can enrol anytime you wish, but the surcharge will be calculated pro-rata, based on the date your policy begins.

mark213

Dont confuse the ATO's Medical Tax Offset with the Medicare Safety Net (and Medicare Extended Safety Net, or Medicare Extended Safety Net Cap), these are different things.

Safety Nets are run my Medicare and provide the level of rebate when claiming for costs from Medicare. The safety net is there to lessen your out of pocket costs once you go over a certain amount of spend claimed through Medicare.

ATO Medical Tax Offset is for all other additional expenses that are above a limit ($2000 next year) and to claim a rebate on your annual tax return.