You may know that from 1 July 2012, income testing will apply to the Govt Rebate on private health insurance. Currently, most people receive a 30% rebate on premiums. If you expect to earn more than $84,000 (single) or $168,000 (couples) in the 2012-13 financial year, your rebate will be affected.
To defer the impact of this change, some insurance providers are helping you lock in your current rebate if you prepay all or part of your premium before 30 June 2012 and the ATO has allowed this. HOWEVER if you prepay, know that some insurance providers have an earlier cut-off date than 30 June. Prepaying may also restrict your ability to change your cover throughout the financial year that you have paid in advance. It’s worth keeping more money in your pocket so contact your insurance provider for details to see if its worth while for you.
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