What Happen to Rebate for Private Insurance When My Income Changes?

biontears on 04/03/2022 - 00:03
Last edited 04/03/2022 - 00:04

Hi guys,

I've been receiving 24% government rebate on my private health insurance (Income under 90k)
I actually changed my job last year which has increased my taxable income to 90k+ and 16% rebate applies to income over 90k
I am still getting 24% rebate at the moment as I did not realize I need to report it to them
What happens to the rebate if my income changes, do I need to report it to the insurance company? or will it get adjusted automatically during the tax time?

It has actually past 7 Months since my job changed, will ATO charge me as part of additional tax during the next tax time to make up for that extra rebate paid to the insurance company over the 7 months?

Financial Health Insurance Insurance

Comments

  • notabank on 04/03/2022 - 00:08
    +6

    You'll just get squared up at tax time. Same thing happens if you elected no rebate but we're eligible. It'll get all worked.out at tax time.
    No need to worry.

    • netjock on 04/03/2022 - 10:40

      For OP: put the difference aside for when the ATO comes for it.

  • upended on 04/03/2022 - 01:03

    You'll most probably pay more in tax when you file your returns as ATO will notice this. When I was in a similar situation a couple of years ago, I called my private health insurance and asked them to drop my rebate level. They gave me the option to pay back the additional rebate for that financial year which I took. When I received my annual statement, it showed that I did not receive any rebate. I suggest you call your insurance provider and at least inform them about the change in your circumstances - you need to let them know at some point in time or you'll find yourself in the same situation every financial year. Whether you pay back the rebate now or when you file your returns is up to you.

  • avoidfullprice on 04/03/2022 - 07:43

    It will get resolved at tax return time.

    For peace of mind, you can just not claim the rebate when you pay your premium, and then at tax return sort it all out.

    Don't worry, you won't get penalised if that's your worry.

  • Seraphin7 on 04/03/2022 - 10:06

    Tax Office will always get their bit.

    • Shleepy on 04/03/2022 - 11:48

      Technically, the tax office is paying you for taking out private health insurance. It's just a case of how much. If they overpay, they will be wanting that over payment back.

  • ozbargainsam on 11/03/2022 - 08:09

    Work pays for my health insurance. They pay the premium minus the maximum rebate and then we pay whatever rebate we don't get at tax time.

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