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Changes to Government Rebates for Private Health Insurance 2012

On 15 February 2012, the House of Representatives passed the Fairer Private Health Insurance Incentives Bills. If the legislation passes the Senate, the tiers will operate as follows from 1 July 2012:

Singles
Families
≤ $84,000
≤ $168,000
$84,001-97,000
$168,001-194,000
$97,001-130,000
$194,001-260,000
>$130,000
>$260,000
REBATE
< Age 65
30%
20%
10%
0%
Age 65-69
35%
25%
15%
0%
Age 70+
40%
30%
20%
0%
MEDICARE LEVY SURCHARGE
All ages
0.0%
1.0%
1.25%
1.5%
Note: These thresholds are based on projected growth in Average Weekly Ordinary Time Earnings (AWOTE). The actual 2012-13 levels will not be known until the December AWOTE are released in February 2012. Thresholds increase by $1,500 for each child after the first. The family thresholds apply to single parent families.

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