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.

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.

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.

Hospital Cover

Hospital Cover Icon

Our private hospital options let you choose the level of cover that best suits your needs and your budget. Basic Hospital is ideal if you're healthy and don't want to pay for what you don't need. For greater cover, Standard Hospital is a good option, while our top Premium Hospital covers give you the peace of mind that you and your family are well protected. There's a choice of excess levels, plus a Premium Hospital - Non-obstetrics cover if pregnancy isn't on your roadmap.

See Hospital Cover in detail

Extras Cover (Optional)

Extras Cover (Optional) Icon

With all our Extras covers, you're not restricted to a network of preferred providers - so you can choose when and where you're treated.
Total Extras and Classic Extras offer the same full range of services, including preventative Wellness Benefits to help you stay healthy. What sets them apart is how much you can claim each year. Basic Extras is a great entry-level cover with affordable dental, physio and optical benefits.

See Extras Cover in detail
What's what?
A co-payment is a percentage amount that you agree to pay towards the cost of hospital treatment in exchange for lower premium costs. CUA Health co-payments are capped at a maximum of either $500 or $1000 per person, per year, except for the 65% Private Hospital policy. For holders of this policy, the co-payment is capped at $1,000 per person, per hospital admission.
Annual claim limits apply to Extras Cover. It’s the total amount CUA Health will pay towards a particular service throughout a year. For example, if your annual claim limit for physio is $440 and CUA Health contributes $34 towards your initial visit and $29 for subsequent visits, you will receive a contribution from CUA Health for 15 visits per calendar year. (Based on CUA Health Silver Extras Cover in the first year).
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.
Important information Important information Show content

**Get 4% discount on your CUA Health premium when you register to pay your premium by direct debit from a Great Southern Bank 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 cua.com.au/health-insurance/health-discount.

Health insurance is provided by CUA Health Ltd ABN 98 098 685 459 (CUA Health) which is not an authorised deposit-taking institution. Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959 AFSL and Australian Credit Licence 238317 does not guarantee or support CUA Health.

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