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From 1 July 2010, the Government will introduce three new ‘Private Health Insurance Incentive Tiers’ –
• Tier 1: for singles earning more than $75,000 (couples $150,000), the Private HealthInsurance Rebate will be 20 per cent for those up to 65 years (25 per cent for those over65, and 30 per cent for those over 70 years). The Surcharge for avoiding private healthinsurance will remain at one per cent.
• Tier 2: for singles earning more than $90,000 (couples $180,000), the Private HealthInsurance Rebate will be 10 per cent, for those up to 65 years (15 per cent for thoseover 65, and 20 per cent for those over 70 years). The Surcharge for avoiding privatehealth insurance will be increased to 1.25 per cent.
• Tier 3: for singles earning more than $120,000 (couples $240,000), no Private HealthInsurance Rebate will be provided. The Surcharge for avoiding private health insurancewill be increased to 1.5 per cent.
All income thresholds would continue to remain indexed to wages, keeping these changesfair and sustainable into the future.
These changes will affect around 10 per cent of Australian adults
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