Singles earning more than $129,001 and families earning more than $258,001 will lose access to their private health insurance rebate from the 2012-13 financial year onwards, under a means test that recently secured passage through the House of Representatives and which will be effective on July 1, 2012.
The measures - which still have to pass the Senate, expected to be a formality- also mean the Medicare surcharge for the groups above will increase from 1% to 1.5% if they do not take out private health insurance. That translates into $1,935pa for high-earning singles and $3,870pa for high-earning families.
At present, almost anyone aged less than 65 years old, regardless of how much they earn, can get a 30% refund from the federal government for the cost of their private health insurance. Those aged between 65 and 69 years old can receive a 35% refund and those aged over 70 years old can get 40% back.
The income test is based on the total sum of the taxable income, reportable fringe benefits, reportable super contributions and total net investment losses, less other taxed elements depending on a person's age and circumstances.
Below is a breakdown of the private health insurance tiers for 2012-13:
| no tier
| $0 - $83,000
| $0 - $166,000
|| $83,001 - $96,000
|$166,001 - $192,000
|| $96,001 - $129,000
|$192,001 - $258,000
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