Most taxpayers know that if they do not have adequate private health insurance, that there can be a charge or a surcharge on the tax assessment.
The taxable income also impacts the government rebate received by the health insurer, which effects the net premium.
The law has recently changed in regards to the way health insurers give you information about your private health insurance premiums. Previously, your health insurer was required to send a private insurance statement to each adult covered by the policy by 15 July each year. It is now optional for them to send you this information. The health insurer may send the statement by email, email, or a link to an online version.
If you do not receive a statement and your tax agent does not, you will need to contact your health insurer. We have observed that most insurers have provided a statement this tax year, but no one can predict what will happen next tax year.
The Australian Taxation Office will income test your share of the policy, regardless of who paid the premiums and how many other people are covered on the policy.
A few taxpayers may be interested in the reason for two lines on the statement. Premium and rebate calculations are based on a year ending 31st March and one line is a code for premiums, before that date and the other code is after that date.
The most significant item is that your policy confirms an adequate level of private health hospital cover throughout the year. If not, you may be liable for Medicare Levy.