Saving on Tax

Tax time can be confusing enough without throwing health insurance into the mix. Below is a simple guide to help you understand if you could benefit financially from having Hospital cover.

Step 1

Who may face extra tax or be affected by government initiatives?

The Australian Government has introduced a number of initiatives to encourage people to take out private Hospital cover in order to reduce the pressure on the public health system. If you fall into one of the categories below, having CUA Health Hospital Cover may benefit your finances as well as your health. As well as saving on tax, the benefits of health insurance include:

  • Shorter wait times
  • Greater control of who treats you and where
  • Peace of mind you will be covered
If you earn more than $90,000 a year as a single or $180,000 as a couple/family/single parent

If you don’t have private hospital cover, you may have to pay the ‘Medicare Levy Surcharge’ of an additional 1% to 1.5% of your income.

This is on top of the mandatory 2% you already pay as the ‘Medicare Levy’ (unless you’re one of the few exempt).

If you’re over 31 years old

Lifetime Health Cover’ is a government initiative designed to encourage people to take out private hospital insurance earlier in life and maintain it.

People who delay taking out cover will pay a 2% loading on top of their premium for every year they’re aged over 30 when they first take out private hospital cover.

If you have Private Hospital Cover

The Australian Government offers a rebate to help cover your premium. Rebates are calculated based on your income and age.

What's the difference between:
Each year, Australian residents pay a ‘Medicare Levy’ of 2% of their taxable income. This gives us our Medicare card, access to the public health system and rebates back from GP visits etc. The ‘Medicare Levy Surcharge’ is an additional 1% to 1.5% charged to high-income earners without private hospital cover.
Public hospitals are government owned and operated, and service the public through Medicare. Because of the demand on public hospitals, there can be lengthy waiting lists for surgeries and patients generally have to share a room with others. Private hospitals are run by independent organisations and give you control over who treats you and when.

Step 2

How could I benefit financially from having health insurance?

If you do fall into the categories of being a high-income earner or over the age of 31, take a look at the following examples to get an understanding of how you could be affected.

Don’t pay the Medicare Levy Surcharge

If you are single and earn $110,000p.a. and don’t have private hospital cover, you’ll be paying an additional $1,375 towards Medicare each year.

Should you fall sick or get injured, you’ll still be treated exactly the same in public hospitals.

Don’t pay Lifetime Health Cover loading

The loading is an additional 2% on the cost of your premium for every year you do not have private hospital cover after the age of 30 (capped at 70%).

If you took out hospital cover for the first time at the age of 40, you will pay 20% more for your hospital cover than someone who took it out at the age of 30. You’ll have to continue paying the 20% more for 10 years before the loading is removed.

Get the Private Health Insurance Rebate

Depending on your age and income you could get a government rebate towards your private hospital and Extras cover.

Get a quote for CUA Health Hospital and Extras Cover and the rebate will be factored into your premium based on your circumstances.

Fast FAQ
The government only requires you to have private hospital cover (not extras). All CUA Health Hospital Cover options provide sufficient coverage to satisfy government criteria for you not to pay the surcharge.

Step 3

What cover is right for me?

It really depends on you and your family. With all CUA Health Hospital cover options, you’ll remain fully eligible for the Medicare Levy Surcharge exemption, but the benefits of health insurance are more than just the tax saving should you ever get sick or injured.

Have a think about your medical history, your current health and anything that may affect you in the future. Are you likely to need to go into hospital in the near future? And if something was to happen to you, how much of a co-payment or excess could you afford to pay? Then think about Extras and whether you need cover for things like optical, physio or dental.

What's what?
An excess is an upfront amount that you agree to pay towards the cost of hospital treatment, in exchange for lower premium costs. The excess does not apply to day surgery or dependant children.
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**Get 4% discount on your CUA Health premium when you register to pay your premium by direct debit from a CUA transaction account. CUA Health reserves the right to amend or remove the discount and any qualifying criteria at any time. We will always provide you with reasonable notice before exercising this right. Full terms and conditions available at

Credit Union Australia Ltd ABN 44 087 650 959 (CUA) is an authorised deposit-taking institution. Visit for more information.

Health insurance is provided by CUA Health Ltd ABN 98 098 685 459 (CUA Health) which is not an authorised deposit-taking institution. Credit Union Australia Ltd ABN 44 087 650 959, AFSL 238317 (CUA) does not guarantee or support CUA Health.

Click here to see the full CUA Health Terms and Conditions.