Get smart over Aussie Taxes

[neddy]

As you people know, the Labor govt massive spending has finally shown results in the Budget this week. The government is broke and you will be asked to pay more taxes.


PRIVATE HEALTH INSURANCE

Last year Budget, they have already cut the premium rebates for those earning "too much". That is another story - old story that I will not bring up here. There are legit ways around that. (see next post - akan datang)


They are taking away rebates for Lifetime Health Loading. So, if you are a migrant who is above 30yo and has not taken up Private Health Insurance after registering for Medicare for a year, you will be hit.

It is better to apply for Private Health Insurance as soon as you can "afford" it and then drop your hospital cover temporary. You have 1,094 days accumulative before loading set in. (see more below)


Your age on 1 July prior to joining Lifetime Health Cover loading
30 0%
31 2%
32 4%
33 6%
34 8%
35 10%
36 12%
37 14%
38 16%
39 18%
40 20%
41 22%
42 24%
43 26%
44 28%
45 30%
46 32%
47 34%
48 36%
49 38%
50 40%
51 42%
52 44%
53 46%
54 48%
55 50%
56 52%
57 54%
58 56%
59 58%
60 60%
61 62%
62 64%
63 66%
64 68%
65 70% maximum


What happens if someone is unemployed, goes overseas or simply chooses to drop out for a while?
The Government recognises that there are going to be times when people need to drop their Hospital cover. For example, if you are travelling overseas for extended periods of time, or in the case of unemployment. To cater for this, people can drop their Hospital cover for up to 1,094 days in total throughout their lifetime, without having to pay an additional Lifetime Health Cover loading when they are ready to take out Hospital cover again. You should note that certain days do not get included in the calculation of these permitted days, such as days spent overseas provided they are part of a continuous period spent overseas for more than one year.

 

[Ash007]

Ross gitin from SMH had an article on the latest budget, being the weirdest he has ever seen. It seems apart from the 0.5% extra loading for NDIS, Abott could actually reverse all the announced changes come September. In effect giving another budget when they take power.

 

[valiant20]

As you people know, the Labor govt massive spending has finally shown results in the Budget this week. The government is broke and you will be asked to pay more taxes.


PRIVATE HEALTH INSURANCE

Last year Budget, they have already cut the premium rebates for those earning "too much". That is another story - old story that I will not bring up here. There are legit ways around that. (see next post - akan datang)


They are taking away rebates for Lifetime Health Loading. So, if you are a migrant who is above 30yo and has not taken up Private Health Insurance after registering for Medicare for a year, you will be hit.

It is better to apply for Private Health Insurance as soon as you can "afford" it and then drop your hospital cover temporary. You have 1,094 days accumulative before loading set in. (see more below)

Waiting for you Bro Neddy to start the thread on the latest Budget! Was surprised to see the baby bonus taken away (but there are other schemes superseding it like the Paid Parental Leave).

Thinking of getting the Basic Cover for Health Insurance with Medibank Private.

I've got about 6 months left to get private health insurance before the loading kicks in. Was away for 3 years so they cancelled my medicare card. Went to register for a new medicare card in Dec and they told me that I'll be treated as a new migrant in regards to the private health insurance scheme.

Looks like a Labor loss this election year.

 

[neddy]

Waiting for you Bro Neddy to start the thread on the latest Budget! Was surprised to see the baby bonus taken away (but there are other schemes superseding it like the Paid Parental Leave).

Which level of private health insurance should I go for?

I've got about 6 months left to get private health insurance before the loading kicks in. Was away for 3 years so they cancelled my medicare card. Went to register for a new medicare card in Dec and they told me that I'll be treated as a new migrant in regards to the private health insurance scheme.

One thing I learnt early here is to get a licensed "financial expert" (tax accountant) to sort a lot of tax matters out. They know the job better than us, and like licensed migration agents, they pay a subscription (Leongsam's favourite word?) to keep themselves up to date professionally.

As for private health insurance, you will find the usual advice,

Are you getting the insurance for (purposes) :-

1. Just in case you need one
2. To start a family
3. Look after your family
4. Save on tax
5. Maximise your cover
6. Help with specific health needs

*** UPDATE: Eg http://www.ahm.com.au/3913/health/package-choices


Because of bad experiences with Malaysia/Singapore type of insurance agents, migrants from these 2 countries have a somewhat different opinion of insurance "salesmen".

But over here, they are regulated and cannot muck around with you. They will try to match exactly what you want. (Car salesmen excluded - in fact they should not be selling you car loans or insurance - only their financial colleagues can help you with financial matters)

 

[valiant20]

One thing I learnt early here is to get a licensed "financial expert" (tax accountant) to sort a lot of tax matters out. They know the job better than us, and like licensed migration agents, they pay a subscription (Leongsam's favourite word?) to keep themselves up to date professionally.

As for private health insurance, you will find the usual advice,

Are you getting the insurance for (purposes) :-

1. Just in case you need one
2. To start a family
3. Look after your family
4. Save on tax
5. Maximise your cover
6. Help with specific health needs

*** UPDATE: Eg http://www.ahm.com.au/3913/health/package-choices


Because of bad experiences with Malaysia/Singapore type of insurance agents, migrants from these 2 countries have a somewhat different opinion of insurance "salesmen".

But over here, they are regulated and cannot muck around with you. They will try to match exactly what you want. (Car salesmen excluded - in fact they should not be selling you car loans or insurance - only their financial colleagues can help you with financial matters)

For myself, is mostly to look after/cover my family. Also to avoid the additional loading when I do want to purchase health insurance in the future. To save on tax is a secondary purpose.

It just that I'm still fairly new to the Medicare system. Will it be sufficient to cover my family medical needs without the private health insurance (assuming we do not head to the private but the public health systems here)? If so, then why are they creating awareness about this age-loading factor for private health insurance?

Yes, I do agree with you. Health & Car insurance here is completely different. The agents do not come looking for you, nor roadshows (on a side note, for those unaware, banks do not organise roadshows to sell credit cards ) You go to them to purchase what you want.

Probably heading to medibank private for the health insurance cover

 

[The_Hypocrite]

Medibank private is crap,,most important is go shop around,,,it seems Bupa is the most popular now,,but shop around lah,,,

For myself, is mostly to look after/cover my family. Also to avoid the additional loading when I do want to purchase health insurance in the future. To save on tax is a secondary purpose.

It just that I'm still fairly new to the Medicare system. Will it be sufficient to cover my family medical needs without the private health insurance (assuming we do not head to the private but the public health systems here)? If so, then why are they creating awareness about this age-loading factor for private health insurance?

Yes, I do agree with you. Health & Car insurance here is completely different. The agents do not come looking for you, nor roadshows (on a side note, for those unaware, banks do not organise roadshows to sell credit cards ) You go to them to purchase what you want.

Probably heading to medibank private for the health insurance cover

 

[valiant20]

Medibank private is crap,,most important is go shop around,,,it seems Bupa is the most popular now,,but shop around lah,,,

I checked out Bupa as well, but their weekly quote is the same as Medibank Private. Was surprised to hear about Bupa (didn't hear of them when I left in '10). Was also gonna check out iselect.

 

[winnipegjets]

Those were freebies and the government decided to reduce freebies. That's not a tax increase.

 

[The_Hypocrite]

It used to be called MBF.....

I checked out Bupa as well, but their weekly quote is the same as Medibank Private. Was surprised to hear about Bupa (didn't hear of them when I left in '10). Was also gonna check out iselect.

 

[MadrigalWheel]

Guess I'm lucky that my company pay Medibank Private Blue Ribbon for whole family.

 

[neddy]

Re: Get smart over Aussie Investment

Limited opportunity to invest in this fund.

This fund is re-opened for new investment until next month, 4 Jul.

Eligible candidates for $500k investment and above.

http://www.montinvest.com/the-funds/montgomery-private-fund/

The Montgomery [Private] Fund is a concentrated portfolio of Australian and New Zealand securities adopting a disciplined, security-specific approach to quality and value.
Investee candidates must demonstrate superior performance and financial stability and display a margin of safety.
Market timing and prediction does not form part of the investment process.
Unwarranted enthusiasm and gloom is pervasive over time, in equal measure. The Montgomery [Private] Fund aims to take advantage of this characteristic of the market in its approach to both acquisitions and disposals.

 

[neddy]

Re: Get smart over Aussie Investment

Roger has another fund with min $25k investment.

If you or your trust do not have the cash, or you do not want dispute with relatives/friends if they share to raise the amount.

I only recomend these funds because Roger is one of the best in Australia - a Warren Buffet type manager.

 

[SgGoneWrong]

Re: Get smart over Aussie Investment

Will I be alright be I do not buy private insurance? Means I just depend on Medicare for hospitalization etc?

 

[neddy]

Re: Get smart over Aussie Investment

Will I be alright be I do not buy private insurance? Means I just depend on Medicare for hospitalization etc?

If you earns an income in OZ, you will need to pay the Medicare levy. There are also long waiting time for elective surgeries.


Investment opportunities
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[SgGoneWrong]

Re: Get smart over Aussie Investment

If you earns an income in OZ, you will need to pay the Medicare levy. There are also long waiting time for </iframe>

Thanks neddy, I actually didn't know I have to pay for Medicare levy on top of taxes till I read your post! I'm not earning enough to pay Medicare levy surcharge, so any advice if I should get insurance? I calculated, a basic plan will mean I still have to fork out over 600 bucks extra a year.

 

[Ash007]

Re: Get smart over Aussie Investment

Get private insurance if you can afford it. Even at the minimum level, it will protect you for the future should you need to be hospitalised. For every year you don't have private cover over the certified age of 30 you are adding an extra 1%-1.5% a year when you reach the threshold. The $600 you quoted would probably be claimed back on the rebate itself. In general, if you felt like you can't afford it at this time then stick to the public system. Just hope and pray that you never have to wait for a 10 year period to get the operation done. I personally was hospitalised last year, and was glad I have private insurance. excess of $500 for a close to 1 week hospital stay in a nice private hospital would have gotten back how much I've put into it not including the surgery fee etc. Also don't forget the physio, cardio, outpatient therapy etc that comes with the private insurance. As an example, a day of stay is around 2-3K in a private hospital.

Thanks neddy, I actually didn't know I have to pay for Medicare levy on top of taxes till I read your post! I'm not earning enough to pay Medicare levy surcharge, so any advice if I should get insurance? I calculated, a basic plan will mean I still have to fork out over 600 bucks extra a year.

 

[SgGoneWrong]

Re: Get smart over Aussie Investment

Get private insurance if you can afford it. Even at the minimum level, it will protect you for the future should you need to be hospitalised. For every year you don't have private cover over the certified age of 30 you are adding an extra 1%-1.5% a year when you reach the threshold. The $600 you quoted would probably be claimed back on the rebate itself. In general, if you felt like you can't afford it at this time then stick to the public system. Just hope and pray that you never have to wait for a 10 year period to get the operation done. I personally was hospitalised last year, and was glad I have private insurance. excess of $500 for a close to 1 week hospital stay in a nice private hospital would have gotten back how much I've put into it not including the surgery fee etc. Also don't forget the physio, cardio, outpatient therapy etc that comes with the private insurance. As an example, a day of stay is around 2-3K in a private hospital.

Thanks ash007, I'll find out more regarding plans etc this weekend. I still have a few months before loading crap kicks in. All the while I thought I was covered free for medical with the high tax rate I pay. Shocking to me that basic medical coverage is additional. Where did all the funds collected from taxes go to???

 

[Ash007]

Re: Get smart over Aussie Investment

The tax are used for medical/hospital, but the government do not want people to rely too much on the public health system. Even in private health, you can get back rebates for certain items, example, my surgery, the doctors fee medicare paid around 50% and the private fund health another 20% on top of that. If I went to public system, it would be totally free, however, I may have to wait up to 10 years for the surgery to happen. You do need some cash in the end but it becomes much much affordable if it happens. Insurance should be viewed that way, as something to guard against. Again, depending on health plans etc, you can claim back on dental, optical etc from private health. This is not covered by medicare. If you can afford it, its a pretty good deal.

Thanks ash007, I'll find out more regarding plans etc this weekend. I still have a few months before loading crap kicks in. All the while I thought I was covered free for medical with the high tax rate I pay. Shocking to me that basic medical coverage is additional. Where did all the funds collected from taxes go to???

 

[valiant20]

Re: Get smart over Aussie Investment

Thanks Bro Ash007 for your advice in regards to the private health insurance. Though my declared income level is not affected by the medicare levy, you've certainly allowed me to make my decision in regards to getting private health insurance.

Just not too sure about getting extras cover though. Might be too expensive for now (though wife needs to do a major dental thingy sigh). Still deciding whether to go with the full cover with Medibank/Bupa or less coverage with CUA.. prob will go with Medibank or Bupa

I still have until Nov before the loading kicks in (Considered new migrant, thus have 12 months to sign up for private health insurance. Medicare said my old medicare card got invalidated since I left the country for more than 2 years.. )

 

[Ash007]

Re: Get smart over Aussie Investment

Bro, no worries, its what this forum is about. It really really depends a lot on your circumstances. Do you have kids? Are you planning to have any? Do you want to go through the private or public system for it. What is your income range? How much are you paying in rent, mortgage, car etc. Its all up to you if you want to take it up or not. There is nothing wrong with the public health system. The only problem is the associated long waiting time. Example, my wife went through the public health system for her pregnancy and it did not cost a single cent. If it was under the private system, then there would be upfront cost of $5K for booking, management fee, hospital charges, gynea fee, etc etc. Of course, you get to chose the gynea you want, when you want to have the caesarian, etc etc as well. Under the public system, they would only do a caesarian only if they deemed that there is a danger to the mother and child. Which means waiting out for the kid to come out. Overall, I was pretty impressed by the public health system. All this, even though we have private health cover. It should be viewed as an insurance not a rort.

Thanks Bro Ash007 for your advice in regards to the private health insurance. Though my declared income level is not affected by the medicare levy, you've certainly allowed me to make my decision in regards to getting private health insurance.

Just not too sure about getting extras cover though. Might be too expensive for now (though wife needs to do a major dental thingy sigh). Still deciding whether to go with the full cover with Medibank/Bupa or less coverage with CUA.. prob will go with Medibank or Bupa

I still have until Nov before the loading kicks in (Considered new migrant, thus have 12 months to sign up for private health insurance. Medicare said my old medicare card got invalidated since I left the country for more than 2 years.. )