discobay

I landed last September, started work in October, applied for Medicare and have been out of work since June. I have not taken out private medical insurance within the 12 months will I be surcharged?

GinaUK

Are you asking about private medical insurance premiums? Then it depends on your age. If you're over 30, then yes, if you take out private medical insurance there will be a premium loading (additional charge) for every year you are over 30.

If you are asking about the Medicare surcharge levy, then that depends on your taxable income. In the 2007-08 tax year (ended 30 June 2008) the levy kicked in if your taxable income went over $50,000 (single person) or $100,000 (couple, family). For the 2008-09 tax year (ending 30 June 2009) the thresholds are $100,000 (single person) and $150,000 (couple, family). The levy is 1% of your taxable income.

Gina

hollykimalan

I think the OP is talking specifically about that 12 month rule for avoiding the
age related proportion increase thingy...this I know nothing about.
But would be interested to know!
HKA
x

discobay

Hi Gina,

I guess I am asking about both. I haven't decided 100% about private medical insurance though we are both over 30 years of age. W.r.t. the MLS would that be charged starting from last year or from this year as I landed 12 months ago? And would the 1% levy be charged every year from now on regardless of whether my personal circumstances changed?

datamile

Its 12 months from getting your medicare card, if that helps. 2% for every year over 30 if you don't have private

discobay

There is conflicting information regarding the start date i.e. date of landing vs date of medicare registration. I am going to have to ring them.
Regarding the 2%, if I am 36 years old does that mean the private medical insurance provider will charge me an additional 12% in premiums?

datamile

http://www.health.gov.au/internet/ma...rs-general.htm

If you are a new migrant to Australia, and are aged 31 or over, you will not have to pay a LHC loading if you purchase hospital cover within 12 months of being registered for Medicare.

If you delay purchasing hospital cover for more than 12 months after your registration, you will have to pay 2% more for each year you are aged over 30 when you purchase your hospital cover.

discobay

That is a very useful link - thank you. I may still have time to buy Lifetime Health Cover (literally days).
Would you be able to help me understand the Medicare Levy Surcharge? Does it also commence 12-months from the date I registered for Medicare or from landing and would it be charged on last year's income or this year's?

datamile

Ok, the other gov useful link with insurer search, and faq

http://www.privatehealth.gov.au/

You could take out cheap public hospital for $70 a month for two, and then that gets you out of the LHC, and then gives you more time to pick the fund you want.

discobay

Will give it a read.

GinaUK

The Medicare Levy Surcharge has nothing to do with the date you arrived in Australia. It is linked to your taxable income in each tax year. Each year when you do your tax return, the ATO computer checks whether you need to pay the 1% or not.

If you have private hospital cover, then the Medicare surcharge levy does not apply. If you don't have private hospital cover, then the Medicare surcharge levy applies if your taxable income exceeds the thresholds..

As I already said in my post above: In the 2007-08 tax year (ended 30 June 2008) the levy kicked in if your taxable income went over $50,000 (single person) or $100,000 (couple, family). For the 2008-09 tax year (ending 30 June 2009) the thresholds are $100,000 (single person) and $150,000 (couple, family). The levy is 1% of your taxable income.

Gina
(sometimes I think I just talk to myself)

hollykimalan

You maybe talking to your self but you aint readin' either!
The OP did not mention 'Medicare Surcharge Levy' in the original post....
It is quite clear you are providing some really good information but have failed to grasp the OPs original question was about that area which deals with 'how long have you got before premiums go up cos you old?'
Having said that...thank you for your info Gina as I am now in a more clear position.
Oh, and yes I was listening!
HKA
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GinaUK

The OP referred only to "surcharge" which could apply to both. Hence - if you can be bothered to re-read my reply - I chose to answer both.
You're a right cow, aren't you! Again, if you can be bothered to re-read my post, I did explain he'd be surcharged on private medical insurance once he got to 30 years of age.

And if you can be bothered to re-read the OP's post no 8, he asks specifically about Medicare levy surcharge, which I have now answered (again).

Although you don't seem to have read either the OP's posts or my posts properly before, I am glad to have been of help to you, HKA.

Gina

hollykimalan

Gina,
Leaving the surcharge to one side just now...
Say my Dad wants to come to Australia, Permanent visa. He will be 62 years old.
Would he NOT be stung by increased premiums 'cos of his age if he take out
health insurance before he has been in Australia for 12 months?
Just wondering...he keeps asking about stuff like this.
HKA
x

GinaUK

He would not be stung by the 2% "penalty" for every year he is over 30.

But all private health insurance companies exclude pre-exisitng conditions when you take out a policy. I imagine at age 62 he may have a few conditions. So, any treatment he would need for those could not be covered under private health insurance.

A private health insurance company could also refuse outright to insure him. Or they could insist that he takes a medical before they insure him.

You know what insurance companies are like ...

But if your Dad got a PR visa, he'd be covered by Medicare.

Gina