Private Health Insurance Rebate News

With the July school holidays just around the corner, parents around the country will be preparing themselves by trying to find ways to keep the kids entertained.

But the kids aren't the only ones that have to be organised for those first weeks of July - families will also need to be aware of changes to their health cover policies.

Higher income households as well as sole parents will be affected when the federal government begins means testing its 30 per cent private health insurance rebate on July 1.

June 1 not only marks the first day of winter, but it also means that Australians have just one month left before the federal government begins means testing its private health insurance rebate.

From July 1, singles earning more than $84,000 a year - along with couples earning over $168,000 - will see their rebate reduced, as well as an increase in the Medicare Levy Surcharge.

While some Australian private health insurance policyholders will not experience any change in their premiums, some higher earning households will be severely affected.

From July 1, the federal government will begin means testing its 30 per cent private health insurance rebate according to three income tiers.

July 1 not only marks the beginning of the new financial year, but it also means that Australians will start to have their private health insurance rebate means tested.

At present, the federal government offers a 30 per cent rebate on the cost of private cover premiums, regardless of the policyholder's income.

However, this rebate will be reduced - and in some cases removed entirely - come July 1.