The good news about tax time

No one likes tax time, right? Filling out forms, finding receipts, working out claims, and wondering whether you’ll pay or get paid. But there is some good news. With the right health cover you can reduce the tax you may have to pay.

If you’re single and earning $90K or over, or a couple/family with a combined income of $180K, you can avoid paying an extra 1-1.5% of your income by getting the right hospital cover.

What’s the Medicare Levy Surcharge?

All taxpayers in Australia pay 2% of their taxable income to the Medicare Levy, no matter what. But if you fall into the income categories above, and you don’t have appropriate hospital cover, you’ll be required to pay an extra 1-1.5% of your income called the Medicare Levy Surcharge.

So do yourself a favour. If you don’t currently have a health plan, or you need to check if you have adequate cover, get in touch with Bupa. Visit a branch, call us on 134 135 or go to

What’s Lifetime Health Cover?LHC image

Lifetime Health Cover (LHC) is an Australian Government initiative that encourages Australians to take out private hospital cover in their early thirties and to maintain their cover throughout their lives.

Private health insurance with private hospital cover is always a good idea, and it becomes more important as you get older, or if you choose to have a family and prepare for their medical needs. Under the LHC, the longer you leave it to get cover for yourself and/or your family, the more your premiums will cost each year after you do. So it’s sensible to make a good choice early, and avoid the additional expense.

It works like this. From July 1st after your 31st birthday, you become subject to Lifetime Health Cover loading. If you get appropriate hospital cover from a recognised provider in that first year, you pay only the base-rate premium for the cover that you choose.

But if you’ve turned 31 and elect not to get health cover, your annual premium will be 2% more than it would have been the previous year. The increase then grows an extra 2% each year until you decide to invest in hospital cover. If you leave it until you’re 35, your premium will be 10% more than the base rate, and so on. Make sense? See the diagram (right).

Another thing to remember is that you must maintain your ongoing cover to avoid the LHC loading. There are exceptions to this rule, but the idea is for you to get covered and stay covered throughout your life.

So it really does make sense to be thinking about and investigating health cover as you enter your thirties. And remember, as long as you take out private hospital cover before July 1st following your 31st birthday, you will not need to pay any extra loading on the cover you choose.

For more information and FAQs, visit us at your local branch, call 134 135 or go to and search ‘Lifetime Health Cover’.

Get in touch if you would like to find out more about Bupa health insurance. Don’t forget to mention your company name if you have access to a Bupa corporate health plan.

Call 134 135

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