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Many Australians are paying the Medicare levy surcharge through their tax returns, when they could be buying private hospital insurance for about the same cost.
Taking out even a basic level of hospital cover, can be a cost-effective way to avoid the Medicare levy surcharge. And it could be of benefit in time of medical need.
People without private hospital cover earning more than $97,000 pay at least 1% extra annual tax via the surcharge, while those earning more than $150,000 pay 1.5% more.
It is worthwhile calculating the amount of surcharge you would pay versus the cost of private health insurance for basic hospital cover.
Some health policies cost little more than $1,050 annually. Extras cover does not affect the surcharge.
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
