EOFY Bill Refresh: What’s Health Insurance Got To Do With It?

It’s that time of year when the warm clothes and doonas are pulled out, and exactly what you’re doing with the kids during the winter school holidays may be on your mind.

Did you know many Aussies are thinking about private health insurance too? This is one of the busiest times of the year for health funds. Why? Read on as we explain and outline some tips and tricks that could save you some serious money, and help you start the new financial year off with some pep in your step.  

The Medicare levy surcharge (MLS) & the Private Health Insurance Rebate 

Heard of the MLS? No? It’s a tax payable by higher-income earners who don’t have an appropriate level of private hospital cover. From 1 July 2023, the MLS income threshold (the amount that determines how much  MLS you might need to be pay) will be going up for the first time since 2014, from over $90,000 to over  $93,000 (for singles) and from over $180,000 (for couples/families) to over $186,000.¹ 

Due to these changes, some singles or couples/families without hospital cover might save money if they drop down an income threshold tier, but it’s important to remember there may only be a slight cost difference between paying the MLS or taking out an appropriate level of hospital cover which could provide you with some future benefit. Having private cover can also give you peace of mind from knowing that in the unfortunate event of a serious illness, with the appropriate cover, you and your loved ones could have access to private care.  

Income thresholds for the Private Health Insurance Rebate are also changing from July 1. This is an amount the  Australian Government contributes towards the cost of your private health insurance premiums, so some  Aussies who previously couldn’t claim a rebate may now be eligible, which is great!² 

So, in the spirit of starting off a new financial year armed with more control over your money, now is a great time to get yourself up to speed if you’re unfamiliar with these two government health insurance incentives.  

Feeling the financial pinch, or hiding purchases? 

Times are clearly tough for so many right now. Recent research commissioned by comparison service, iSelect,  has highlighted that the cost-of-living pressures are being felt across the board by Gen Z’s and Millennials, with most surveyed (73%) agreeing that they’re making cutbacks due to the rising cost-of-living/to meet day-to-day living expenses. Some even admit to hiding a purchase, with the study also revealing that 23% of Aussies surveyed say they have hidden a purchase from a partner, with clothing (44%), followed by electronics (21%)  and wine/alcohol (20%) the top three most commonly hidden purchases.³ 

Perhaps you’re hiding purchases because you’re feeling guilty about spending money? Or maybe you’re simply feeling the pinch. If so, it could be worth your while to carve out a few minutes from your busy schedule to do an end-of-financial year review of your household bills and expenses (not just private health insurance) to see if you could save some money. Be it your household energy plan, home and/or contents insurance, or your home loan deal, a comparison service such as iSelect* can see if they can put some cash back into your bank account.

If you do decide to switch, they’ll also help you take care of the whole process, saving you time and effort as well. 

Disclaimer 

*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial  

¹ Source: Medicare levy surcharge income, thresholds and rates | Australian Taxation Office (ato.gov.au) 

² Source: Income thresholds and rates for the private health insurance rebate | Australian Taxation Office (ato.gov.au)

³ Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 6 April and 13 April 2023. The sample is  n=2,112 Gen Z’s and Millennials aged 18-43 comprised of a nationally representative sample of 1,000 singles living alone and 1,112 couples  living together, no kids

arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.