The start of a new financial year is the best time to get private health insurance to maximise the benefits.
If you are currently paying the Medicare levy surcharge you should consider taking out private health insurance as soon as possible to avoid paying the surcharge again this financial year. Further, the level of the rebate on your private health insurance is tiered, and as your income^ increases the level of rebate decreases. If you have held your policy for a number of years without review, you could be claiming too high a level of rebate, resulting in an amount payable at tax time. The Medicare levy surcharge and the private health insurance rebate from 1 April 2020 to 31 March 2021 are shown in the tables below.*
Note Family threshold increases by $1,500 for every child after the first child.
^Income includes more than just your taxable income, but also includes reportable superannuation contributions and reportable fringe benefits as well as others in the definition of Income for Medicare levy surcharge purposes.