7 Daily Hacks to Better Tax Refunds – Day 5 (Income Protection)

By Stephen Burns, CEO Mr Tax Refund.

If you’re single and earning over $90,000 or over $180,000 as a couple you will be charged the Medicare Levy Surcharge if you don’t have private health insurance. The surcharge can be over $1,000 a year (2% compulsory Medicare Levy plus 1% extra Surcharge).

Instead of paying this money, you could invest in private health insurance. Some health insurance policies cost less than $1,000 per year and this way you know you are privately covered for any unexpected medical issues.

 

If you are earning under $90,000 as a single or under $180,000 as a couple then the Medicare Levy Surcharge does not apply to you.

Check your Medicare Levy Surcharge rate with the Private Health Insurance Rebate Calculator.

Income Protection Insurance

We constantly hold ourselves accountable to provide for our families and to plan for the unexpected. No matter how hard we try to keep on track by staying out of harm’s way and being healthy there are too many things we can’t control and risks we can’t avoid.

Income Protection Insurance provides you and your family with an income if you get sick or injured. It’s also tax deductible so should put more cash back in your pocket around tax time.

Your tax consultant will be able to help you claim the cost of the premiums you pay against the loss of your income.

×       You can’t claim life insurance, trauma insurance or critical care insurance premiums.

There are a few more things you should know about what you can’t claim on your Income Protection Insurance so it’s best to speak to a professional tax consultant.

Want more tips? Check out out our whole Ebook here.