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First Time Tax - Private Health Insurance Dependent

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Newbie

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Replies 5

Hi everyone,

 

I had an earlier post asking about Private Health Insurance. Some background context, I am a dependent. Overall income (work + taxable government payments) below minimum threshold. No hospital cover. The adults whose policy I'm covered under, they receive tax-free government payments and that's it. I know I am code F for this section, but what I am confused about filling in the policy details of this section. Do I or don't I?

 

https://www.ato.gov.au/Individuals/Medicare-levy/Completing-Medicare-and-private-health-insurance-on...

 

The above hyperlink contained the following:

 

If you are covered as a dependent child on a private health insurance policy, you are not entitled to receive the rebate. If their income is above the Medicare levy surcharge threshold dependent children need to type or write their private health insurance details (membership number and health insurer ID) in their tax return, including the tax claim code F so they do not have to pay the Medicare levy surcharge.

 

You may need to complete the private health insurance policy detail section of your tax return so we can verify your insurance coverage. This will ensure you are not charged the Medicare levy surcharge (if your income is above the threshold).

Before completing the private health insurance section of your tax return, you will need to obtain a statement from one of the adults covered on the policy.

 

Based on my circumstances, it appears I do not need to fill in any policy details? The level income is too low.

 

Also, what does "If their income is above the Medicare levy surcharge threshold dependent children need to type....." mean? Who/what is "their income" referring to?

 

Thank you

 

RadicalOne

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Most helpful response

Community Support

Replies 2

Hi @RadicalOne,

 

Thank you for your reply. The page on private health insurance rebates on our website advises - Anyone covered as a dependent child on a private health insurance policy is not considered to have a share of the cost of the policy. The adults covered in the family policy will have equal shares of the premium. 

 


If you pay for a policy that only covers a dependent child (or children), the child is not eligible for the private health insurance rebate. If the child's parents are:

  • together, then one of the parents may claim the rebate – this applies regardless of which parent paid for the policy
  • no longer together, then the payer of the policy must claim the rebate - the payer of the policy does not need to be a parent of the child.

To complete the return for a dependent child you can use this link. 

 

Hope this helps.

 

Regards,

Jodie2.

 

5 REPLIES 5
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Taxicorn

Replies 4

@RadicalOne 

 

Yes, you include the details with $0 paid $0 rebate and code F.

 

Your parents will not have to pay Medicare levy surcharge if their total taxable income doesn't exceed $180,000

 

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Newbie

Replies 3

@macfanboy 

 

Do you mean just saying $0 for paid and $0 for rebate? I am well below the threshold. Parents are well below threshold as well.

 

The insurance is extras only. No hospital cover.

 

If you are covered as a dependent child on a private health insurance policy, you are not entitled to receive the rebate.

If their income is above the Medicare levy surcharge threshold dependent children need to type or write their private health insurance details (membership number and health insurer ID) in their tax return, including the tax claim code F so they do not have to pay the Medicare levy surcharge.

 

What does it mean still by "their income....."? Either way, parents and I are both below respective income thresholds. My interpretation is I don't have to fill in details because it's not necessary?

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Most helpful response

Community Support

Replies 2

Hi @RadicalOne,

 

Thank you for your reply. The page on private health insurance rebates on our website advises - Anyone covered as a dependent child on a private health insurance policy is not considered to have a share of the cost of the policy. The adults covered in the family policy will have equal shares of the premium. 

 


If you pay for a policy that only covers a dependent child (or children), the child is not eligible for the private health insurance rebate. If the child's parents are:

  • together, then one of the parents may claim the rebate – this applies regardless of which parent paid for the policy
  • no longer together, then the payer of the policy must claim the rebate - the payer of the policy does not need to be a parent of the child.

To complete the return for a dependent child you can use this link. 

 

Hope this helps.

 

Regards,

Jodie2.

 

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Newbie

Replies 1

@Jodie2 @JoshH 

 

Thank you for your response. Unfortunately, it does not really clear things up.

 

I am a dependent. Overall income (work + taxable government payments) below minimum threshold. No hospital cover. The adults whose policy I'm covered under, they receive tax-free government payments and that's it. They are also below the threshold.

 

I know I am code F for this section. I know as a dependent I cannot claim the rebate. What I am confused about is filling in the policy details of this section. Do I or don't I given the circumstances?

 

The page you hyperlinked me to for dependents contains the following:

 

"If you are covered as a dependent child on a private health insurance policy, you are not entitled to receive the rebate.

If their income is above the Medicare levy surcharge threshold dependent children need to type or write their private health insurance details (membership number and health insurer ID) in their tax return, including the tax claim code F so they do not have to pay the Medicare levy surcharge."

 

According to that, and what I wrote above about my cirucmstances, I have been getting mixed signals about whether I actually need to fill in the private health insurance section. From my understanding, it appears that I do not need to fill it in.

 

I would like some clarification about this please.

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Community Support

Replies 0

Hi @RadicalOne,

 

If you are covered as a dependent child on a private health insurance policy, you are not entitled to receive the rebate.

If their income is above the Medicare levy surcharge threshold dependent children need to type or write their private health insurance details (membership number and health insurer ID) in their tax return, including the tax claim code F so they do not have to pay the Medicare levy surcharge."

 

You can check the link for surcharge above, you advised your parents are below the threshhold therefore you would not complete it.

 

Hope this helps.