PHI Rules

Under the Australian Government Private Health Insurance Rebate, what determines the percentage of rebate a customer is entitled to?

• The type of health insurance policy they hold (e.g., hospital or extras).

• Their taxable income tier and their age.

• The number of claims they have made in the past year.

• How long they have held private health insurance with the same insurer.

How does the Medicare Levy Surcharge (MLS) threshold adjust for families with children?

• It increases by $1,000 for each additional child after the first.

• It remains the same regardless of the number of children.

• It increases by $1,500 for each additional child after the first.

• It decreases for each child after the first, up to a maximum reduction of $5,000.

Which of the following scenarios would make an individual exempt from the Medicare Levy Surcharge (MLS)?

• Earning a Taxable Income of $110,000 per year as a single and holding extras cover only.

• Earning a Taxable Income of $120,000 per year as a single and holding basic hospital cover with a private health insurer.

• Earning a Taxable Income of $120,000 per year as a single and holding international health insurance cover.

• Earning a taxable income of $95,000 per year as a single without any private health insurance coverage.

Jacob, born on May 22, 1990, earns a Taxable Income of $135,000 per year and does not have private hospital cover. What is his MLS and Medicare Levy liability?

• 2% Medicare Levy only

• 2% for Medicare Levy and 1.25% for MLS

• 1% Medicare Levy and 1% for MLS

• No additional taxes

Julie earns a taxable income of $85,000 per year and took out private hospital insurance on September 1, 2022.
What is her total tax liability related to the Medicare Levy and Medicare Levy Surcharge for the 2022/2023 financial year?

• $2,550

• $850

• $1,700 for Medicare Levy only

• $4,250

Who is exempt from paying Lifetime Health Cover Loading?
Select the most correct scenarios to all that apply

• Margaret, who was born on the 1st of July 1934

• Kushdeep (38) has immigrated to Australia and taken out a Hospital cover within the first twelve months of receiving Medicare.

• Belinda (30), originally from New Zealand, has been living in Australia for the past two years. She has never taken out a Hospital cover.

• Jane (32) is an Australian Citizen and has held a continuous Extras policy for the last 12 years.

Mark, born on November 10, 1983, is buying hospital cover for the first time on December 1, 2015. What percentage LHC loading will apply to his premium?

• 0%

• 2%

• 4%

• 6%

Tom, born on July 21, 1977, started private hospital cover on April 20, 2019. What is his LHC loading?

• 18%

• 22%

• 20%

• 10%

If a customer suspends their hospital cover for an approved reason (e.g., traveling overseas), how does this affect their Lifetime Health Cover (LHC) loading?

• The suspension period counts toward their 1,094 Days of Absence, but no LHC loading is applied.

• The customer must pay the full LHC loading for the time they were overseas

• The suspension period is excluded from the 1,094 Days of Absence, and their LHC loading is not affected.

• Their LHC loading is reset, and they must start accumulating years again after their return.

What Lifetime Health Cover Loading (LHC) applies in this senario?
Ian (45) arrived into Australia 5 years ago. He received Medicare Eligibility 2 years ago and never took up a Hospital policy.

• 4%

• 10%

• 15%

• 30%