Frequently Asked Questions

Rebate

How can I work out which rebate tier I’m entitled to?

  • Step 1: Estimate your household income for the financial year. This will determine which rebate tier you fall under. (If you have children, the income threshold for each tier is increased by $1,500 for every child after your first).
  • Step 2: Look up your age on the rebate tier table. This will tell you how much rebate you are entitled to.

What if I nominate the wrong tier?
You can nominate a new tier at any time and the Tax Office will work out any differences when you put in your annual tax return.

It is important to note that if you have under-estimated your income and are claiming a higher rebate than you’re entitled to, you will need to repay the Tax Office after you have lodged your tax return. If you over-estimated your income, you will get more tax back at the end of the financial year.
 
Is there a penalty for nominating the wrong tier?
There is no penalty for nominating the wrong tier. If you nominate the wrong tier, the Australian Tax Office will reconcile any differences when you lodge your annual tax return.

I have a Lifetime Health Cover loading on my health cover. Does the rebate apply to my loading?
No. As of 1 July 2013, the rebate only applies to the standard contribution payment portion of your cover. This means that you have to pay the full cost of any LHC loading on your health cover. We would prefer not to make this change to your contributions, but it is now Government legislation.

Can I pre-pay my contributions to lock in my current rebate?
Pre-paying contributions to lock in a rebate tier was available for the 2012/13 financial year while income testing was being introduced. Because the rebate is administered by the Tax Office and is based on your yearly taxable household income for Medicare Levy Surcharge purposes, we are no longer able to lock in your rebate tier.
 

 

Rebate Tiers

as at 1 April 2018

  Income threshold
(for 2017/18 financial year)
Age & Rebate Amount
(age of the oldest person on your health cover)
Under 65 years 65-69 years 70+ years
Base Tier Singles
$90,000 or less
Families*
$180,000 or less
25.415% 29.651% 33.887%
Tier 1 Singles
$90,001 –  105,000
Families*
$180,001 – 210,000
16.943% 21.180% 25.415%
Tier 2 Singles
$105,001 – 140,000
Families*
$210,001 – 280,000
8.471% 12.707% 16.943%
Tier 3 Singles
$140,001 or more
Families*
$280,001 or more
0% 0% 0%

 *If you are a family with children, the income threshold for each tier is increased by $1,500 for every child after your first. Family includes couples.

 

 


Income & Taxation

My household income is under $90,000 (single) / $180,000 (family) - what do I have to do?
If you are not yet a contributor of onemedifund, you will need to nominate ‘Base Tier’ when you apply for the rebate.

If you are currently a contributor and receiving the Base Tier rebate, you do not need to do anything. You are still entitled to the same level of rebate you have now. If you are a contributor but not receiving any rebate, you can select Base Tier on our Rebate Application Form.
 
My household income is over $90,000 (single) / $180,000 (family) - what do I have to do?

It is up to you to let onemedifund know if you wish to nominate a rebate tier. If you are not yet a contributor and you do not nominate a tier, we will automatically be charged the full contribution rate without any rebate up front.

If you are currently a contributor and you do not nominate a new rebate tier, we will keep your rebate the same as it is now.
 
Do you need to know my income?
No, you do not need to tell us your income and for your privacy we will not record that information. All we need to know is which rebate tier you nominate.
 
What is my ‘taxable household income for Medicare Levy Surcharge purposes’?

Your household income will be your income (and your spouse’s income if you are a couple or family), as well as a range of other Tax Office criteria.
 
Please check with your tax agent, financial advisor or the Tax Office for your accurate household income. For more information, and to calculate your household income online, go to www.ato.gov.au/privatehealthinsurance.
 
Whose income will be counted?

If you are a couple or family, both adults’ incomes will be included in the household income. If in doubt, please contact the Tax Office, your tax agent or your financial advisor.

The income threshold relates to your income for Tax Office purposes, not your health cover. For example, if you have single cover but are a family, the Tax Office will consider your family income, not your individual income.

What if my household income changes throughout the year?
You can change your rebate tier at any time and the Tax Office will work out any differences when you put in your annual tax return.

What if I am not sure what my income will be?
You will need to estimate your income as closely as possible when you nominate your rebate tier. The Tax Office will administer the rebate and any differences will be reconciled through the income tax system, in a similar way to some family tax benefits.

Another option is to choose no rebate and, if you are entitled to a rebate, the Tax Office will include this as a lump sum after you lodge your tax return.
 
Will you still send me a Tax Statement?
Yes. In fact, each adult on your health cover will be sent their own Tax Statement. You can also download these at any time through Online Services. Dependent children can use their parent's tax statement for their own tax return.

 


Employers

What if my employer pays for my health cover?
Your employer can keep paying for your health cover, but it is up to them how much they will pay. Only you can nominate your rebate tier, your employer cannot nominate a tier on your behalf. If you have any questions, please check with your payroll department.

I'm a paymaster who pre-paid last year, what do I need to do?
If you would like your employees to be included on your company invoice, you will need to contact onemedifund with a list of the employees you wish to include. We will then arrange for their payments to appear on your invoice. If you would like to change the direct debit details or frequency of your direct debit payments, please contact onemedifund in writing.

I'm a paymaster, can I elect a tier on behalf on an employee?
No, you are unable to make a tier change on an employee's cover unless you have written authorisation from them to make changes on their cover. The contributor will need to contact onemedifund to elect their tier.

I'm a paymaster, can I check whether an employee is included on our company invoice before the next payment?
Yes, you can contact onemedifund during business hours to confirm the list of employees included on your company invoice. 


 

 

If you have any further questions not covered above, please email info@onemedifund.com.au or call 1800 148 626.