Tax time

Tax time

 

Tax time doesn’t have to be taxing: Our (relatively) pain-free guide to EOFY and health insurance

Imagine how much less fun New Year would be if you had to do your taxes at the same time? Boo!

Thankfully the Australian financial year ends June 30. Accountants party with calculators and financial statements, so you’ll need your private health insurance tax statement to do your taxes. We’ll issue yours in early July. (We’d love to issue it earlier but the bean counters tell us that we have to wait until the end of the financial year.)


What info do I need for my tax?

From Peoplecare’s tax statement:

  • Health insurer ID
  • Membership number
  • Your premiums eligible for Australian Government rebate
  • Your Australian Government rebate received
  • Benefit code
From the ATO:
  • Tax claim code (tip: it’s not on any tax statement. Find it here.)

How do I read my tax statement?

Here’s how to find all the info to do your taxes on your Peoplecare tax statement.

 

What does it all mean?

  • Health Insurer ID: A number used to identify each private health fund. Peoplecare’s Health Insurer ID is LHM.
  • Benefit code: This code is for the rebate. It identifies the age bracket people fall into.
  • Your premiums eligible for the Australian Government Rebate: This is how much per person is eligible for the Rebate. The ATO takes your hospital and extras cover rates to get this number.
  • Number of days this policy provides an appropriate level of private patient hospital cover: This is how many days of the year you are exempt from the Medicare levy. If your statement reads 365 (or 366 in a leap year), then you don’t have to pay the Medicare levy. Yay!


I want my tax statement now!

Hold tight – you’ll receive your statement in the post in July. But you can access it earliest (the first week of July) online. Here’s how:

 

I’m a bit behind with my tax paperwork. Can I get tax statements for previous years?

Absolutely! Log in online and you can get your three most recent statements. Any further back than that and you’ll have to give us a buzz and one of our Peoplecarers will be more than happy to email statements to you.


I’m on my parents’ cover. Can I get a rebate?

No, you’re fresh out of luck. Dependents can’t claim the Medicare rebate.


What’s the difference between the rebate and the Medicare levy?

The rebate is a government contribution towards your private hospital & extras cover, whereas the Medicare levy is a tax for people who earn over a certain income who don’t have hospital cover. 

 

I’m freaking out. My statement says I paid $0 in contributions!

If you’ve pre-paid your cover to lock in the previous year’s rates, this year’s numbers will look a bit off. The key figure you’re looking at is Number of days this policy provides an appropriate level of private patient hospital cover. If the number matches the number of days in the year, 365 (or 366 in a leap year; 2020 is the next leap year), then you won’t have to pay the Medicare Levy Surcharge.

 

How do I get my Medicare Rebate?

For most of our members who choose to claim the rebate as they go, it’s done automatically. Their ongoing payments are reduced by the rebate amount. In any case, your statement will tell you the dollar amount of personal rebate you received.

 

I didn’t see my LHC Loading Statement. Does that mean I’m done?

These statements are mailed separately, and you’ll only get one if you have a Lifetime Health Cover loading. Once again, you can log in online to view this statement.

 

Why can’t you combine my LHC Loading Statement and tax statement into the one document?

I know right? We have rules to follow and at the moment the two statements have to be separate. In the meantime we’ll be shaking our fists at the skies.

 

When is the financial year?

It isn’t a dumb question. Different countries have different financial years. In Australia the financial year runs from 1 July to June 30 the following year.

 

Holy smokes Batman, I missed five days of hospital cover this year. Do I need to pay a full year’s worth of Medicare levy?

No, the levy will be calculated only on the days you missed.