11 May 12 Private health insurance rebate and prepaying premiums
MEMBER 107 writes:
"The new system commences 1 July 2012 and the private health insurance rebate will then be income tested. Where a member has claimed the 30% discount up front on their premiums, they may need to pay some or all of this back depending on the member’s relevant income for that tax year.
There seems to be a view 'out there' that if a member prepays the next 12 months of premiums for 2013 year before 30 June 2012, they can have advantage of the 30% reduction and will not need to repay any or all of the rebate when their personal ITR for 2013 is lodged, regardless of their income. I am not sure that this is correct.
I have just sighted an email allegedly from one health fund stating the above. Another health fund says members can prepay 18 months up to 31 Dec 2013. An accounting firm says you can prepay 12 months to 30 June 2013.
Who is correct?"