Dear Sir or Madam,
Say my base income is $100,000 and had about $5k bonus in 24-25 FY, so this pushed me above the non-MSL threshold and I needed to get PHI. If I stay on the same income in 25-26 FY, but I earn no bonuses, can I then cancel the PHI because it's mostly for tax purpose?
My company's salary review is in April and one of the bonuses came in Jan/Feb 2026, so they don't align with the FY start and end dates nicely.
The MLS rate for tier 1 is 1% of income, so $1,050 on $105,000.
If you are taking out an appropriate level of PHI for tax purposes only then I would question whether you can find a policy for less than $1,050.
@Taxduck What is your take when the PHI and MLS are close? Say I was on $86 monthly for PHI and $1032 annual, which is close to the MLS of $1050 without PHI
Consider whether there are other benefits to taking out PHI other than for tax purposes only.
Other considerations:
Expected policy cost in future if you don't take out PHI.
Projected future income
Having a spouse or a child - MLS threshold effectively doubles (though family income is the MLS income threshold)
Following link provides information
PrivateHealth.gov.au - Australian Health Insurance Information
22 Apr 2024 · 6 min read time
15 Apr 2026 · 5 min read time
15 Apr 2026 · 4 min read time
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