Means testing the private health insurance rebate starts on 1 July this year. The ATO says that, from 21 May 2012, it will write directly to tax agent clients who may be affected by changes to the private health insurance rebate. The letter will provide information to assist those people determine whether their entitlement to the rebate will decrease.
The ATO says tax agent clients do not have to do anything. If they are affected by the means testing, they may choose to contact their private health insurer to reduce the rebate they currently receive as a premium reduction to avoid incurring a liability at tax time in 2013.
The ATO will also write to tax agent clients who claim a private health insurance tax offset, or pay a Medicare levy surcharge, to inform them of the private health insurance rebate and Medicare levy surcharge changes. No further action is required by these clients, the ATO said.
[LTN 93, 16/5]