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Your age at tax time


Being twenty-something is awesome. You may be lucky enough to still be on the same health cover policy as your family if you are under 25 and still studying.

If you are a little older, building your career and submitting a healthy annual tax return, pay attention!

If you are earning over $90k as a single person, or over $180k as a family/couple, you need to know about the Medicare Levy Surcharge.

And regardless of your income… if you’re approaching your 31st birthday, you also need to consider taking out private health insurance – because the clock is ticking.

You see, if you don’t have hospital cover by the July after you turn 31 years old, you will pay an extra 2% for each year you remain uncovered when you eventually join. This is called the Lifetime Health Cover Loading (LHC).

31 years old and uncovered? Add 2% to the cost of your hospital cover when you join.
34 years old and uncovered? Add 8%
40 years old and uncovered? Add 20%
… and so on until the maximum LHC is reached at 70%.

For example:

Sarah took out hospital cover when she was 30 for say $100 per month (before the Lifetime Health Cover loading kicked in).

Tom has never had private health insurance but joins when he is 40. For exactly the same policy, he’d need to pay an extra 20% more, $120 per month. That’s an extra $240 a year.


So it pays to get covered while you’re 30 or younger if you can afford it.

There are lots of great cover options to consider from dozens of trusted Australian health funds so it’s important to compare what’s on offer.

To find your perfect health cover, Choosewell can ask you the right questions and get you started on the right cover. Give us a call on 1300 421 154 or request a call back for a free health review.

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