Prepay Private Health Insurance, Again?
A year ago, in June 2012 there was a significant advantage for some very high income earners to pre-pay their health insurance premiums for the next 12-13 months (depending upon the health fund).
By so doing, they locked-in the 30% private health insurance tax offset that they would otherwise lose, for any premiums paid from 1 July 2012.
So what about June 2013?
Well, a very little known change is about to catch out many, no matter what your income level is. That's right, it is not just going to affect high income earners, but anyone who has a 'lifetime health cover' loading on their premiums.
In simple terms, the tax offset you may be currently entitled to will continue, but not on the loading component of your premium.
If you contact your health fund and prepay, by 30 June 2013, it may be to your benefit - as you will lock-in the tax offset that will otherwise be lost from 1 July 2013.