Help your clients maximise their health insurance benefits this EOFY

As the end of the financial year approaches, many of your clients will be reviewing their finances and tax position. This is a great opportunity to remind them that private health insurance not only protects their health and wellbeing, it can also have important tax implications.
 

Here’s a checklist to help you ensure your clients are getting the most from their cover as they prepare for EOFY.

The private health insurance rebate is income-tested and available to clients who hold an eligible policy. Based on their age and income tier, the rebate could reduce the cost of their premiums by up to 24.288% if claimed upfront or as a tax offset when lodging their personal tax return. Reviewing their income estimates now can help ensure they’re receiving the correct rebate and avoiding adjustments or debts at tax time.

Clients earning above the surcharge threshold, who do not hold appropriate hospital cover, may face an additional surcharge between 1% and 1.5% of their income. The surcharge is paid for the days that they don’t hold hospital cover, ie: if they held hospital cover for part of the year, then they will only have a partial exemption from the MLS. Securing eligible hospital cover at the beginning of the new financial year can help them avoid this surcharge, while also giving them access to the broader benefits of private health insurance.

For clients still impacted by Lifetime Health Cover loading, this is a good time to review how long they’ve held their hospital cover. If they’ve maintained their policy for over 10 continuous years, they may now be eligible to have the loading removed entirely. Reviewing this could help reduce their premium and improve long-term savings.  By highlighting these considerations, you’re helping your clients make informed decisions this EOFY – protecting both their financial and personal wellbeing.