IF you're among the two million Australians affected by the Federal Government's new laws that raise private health insurance costs for higher income earners, think before you rush for the exit door.   :-?

Ditching health cover could cost you more than paying higher premiums as there's a big tax slug for quitters.

Last week's new law to means test the 30 per cent private health insurance rebate comes with an increase in the Medicare Levy surcharge, from 1 per cent today to up to 1.5 per cent from July 1, for big earners.   :)

The means testing won't affect families earning less than $166,000 a year and singles on less than $83,000, but higher earners will pay hundreds of dollars a year extra for their cover, depending on incomes and number of children.   :)

But walking out of private health because of the changes could cost thousands. The Medicare levy surcharge rise means a person earning $125,000 a year would be hit with an extra tax bill of $1875 if they drop out of the correct private hospital cover.

A family earning $200,000 would have to pay a $2500 surcharge if they quit.

Forecasts of how many people will walk away vary wildly. The Government says 27,000, the health insurance sector suggests more than 1.5 million. Someone's clearly wrong.

There's a good argument that lower-income families should not be subsidising the private health cover of wealthy Australians, as they have been doing for more than a decade.   ;)

Whatever your view, it's vital to do your sums before you make your move.

Read more: http://www.news.com.au/money/cost-of-living/healthy-solutions-to-bitter-pills/story-fnagkbpv-1226275582390#ixzz1mtl2c3Bu

Why should anyone on $200,000 a yr expect a cleaner on $40,000 a yr to help pay for their private health insurance?

Yes a very good point adelcrow.  This is the right thing to do, and long overdue.   ;)

wrote on Feb 20^th, 2012 at 3:54pm:

IF you're among the two million Australians affected by the Federal Government's new laws that raise private health insurance costs for higher income earners, think before you rush for the exit door.   :-? Ditching health cover could cost you more than paying higher premiums as there's a big tax slug for quitters. Last week's new law to means test the 30 per cent private health insurance rebate comes with an increase in the Medicare Levy surcharge, from 1 per cent today to up to 1.5 per cent from July 1, for big earners.   :) The means testing won't affect families earning less than $166,000 a year and singles on less than $83,000, but higher earners will pay hundreds of dollars a year extra for their cover, depending on incomes and number of children.   :) But walking out of private health because of the changes could cost thousands. The Medicare levy surcharge rise means a person earning $125,000 a year would be hit with an extra tax bill of $1875 if they drop out of the correct private hospital cover. A family earning $200,000 would have to pay a $2500 surcharge if they quit. Forecasts of how many people will walk away vary wildly. The Government says 27,000, the health insurance sector suggests more than 1.5 million. Someone's clearly wrong. There's a good argument that lower-income families should not be subsidising the private health cover of wealthy Australians, as they have been doing for more than a decade.   ;) Whatever your view, it's vital to do your sums before you make your move. Read more: http://www.news.com.au/money/cost-of-living/healthy-solutions-to-bitter-pills/story-fnagkbpv-1226275582390#ixzz1mtl2c3Bu

A Government that wants to force, poor Australians to subsidize the healthcare of the rich through taxation has no business Governing in Australia. 8-)

mmmmmm and now we havent got the money to invest in education... something her ladyship has been bleating on about since they got in REVOLUTION... yet here we are again...no money...LOL

well they have taxed the wealthy with their flood levy...or is that just the better off???..

and now the extra wealthy yikes all 200,000 of them will lose the health rebate.....and if they dont keep insured they will again be punished for being rich... and taxed to hell...

good one.. if anyone remains in this country that earn big numbers I will be amazed..

with all this buying offshore..if anyone would be driven to shopping online just to get their own back... it would be this select FEW..

who will they TAX for this $5billion education revolution... that although it has taken 2 years and god only knows what to come up with this figure..of $5bn.. it is needed right now.. yet they are talking 2014...

what a crazy mess..I think they may be running out of people to TAX

SOOO True   ;D ;D ;D

Once you hit the middle there are only the lower income earners to go....

That will displease many on here.

I guess that means the the Rudd/Gillard govt have been VERY big spenders.... seeing that they have already wiped out the billions left to them by the previous Liberal Government.

beware wrote on Feb 20^th, 2012 at 6:34pm:

I guess that means the the Rudd/Gillard govt have been VERY big spenders.... seeing that they have already wiped out the billions left to them by the previous Liberal Government.

Strait out communist propaganda, the Government stole the money off the workers it forces to work for them and then spent the money on wealthfare - there will be no case for a future face of the Government to once again steal off the workers it forces to work for it at slave rates to pay for its last scam...thats circular reasoning... 8-)

Lets not forget the illegal Iraq war, that the liberals got us involved in.  How much did it cost, I  forget?.   :(

adelcrow wrote on Feb 20^th, 2012 at 4:35pm:

Why should anyone on $200,000 a yr expect a cleaner on $40,000 a yr to help pay for their private health insurance?

Why should those of us on $200,000 feel we should have to pay for the fking cleaner to have free healthcare?

Why should I support other people?

Why should they support the well off, and high income earners?.   :( 

wrote on Feb 20^th, 2012 at 7:11pm:

Why should they support the well off, and high income earners?.   :(

Because by using the private system I am not using the public system.

Why should I have to pay for people to have free healthcare if they pay so little into the country?

What about people that cant even afford private insurance?.  It doesn't even start until people earn $83,000.  Sorry high income earners don't need a rebate.   ;)

wrote on Feb 20^th, 2012 at 7:11pm:

Why should they support the well off, and high income earners?.   :(

Have you tried living/surviving in Sydney? It's one of the top five most expensive cities in the world to live in. Making $100k-$200k doesn't make you rich, it makes living in Sydney more affordable.

Well then just imagine, what it must be like for someone on $40k or less.   :o