The 3 Bills that propose to means test the 30% private health insurance rebate have now passed all stages and await Royal Assent. The changes will start from 1 July 2012. The Bills are the Fairer Private Health Insurance Incentives Bill 2012, Fairer Private Health Insurance Incentives (Medicare Levy Surcharge)Bill 2012 and the Fairer Private Health Insurance Incentives (Medicare Levy Surcharge – Fringe Benefits) Bill 2012. Individuals earning more than $84,000, or families earning more than $168,000, will start to lose the rebate in the 2012-13 financial year. In the 2012-13 financial year, the rebate will only cut out completely for singles once they were earning more than $130,000 a year and for families earning more than $260,000. The income test thresholds are based on the income for Medicare levy surcharge purposes.
[LTN 52, 16/3]