While single parent families in Australia are already faced with many financial challenges, they can expect a small amount of relief when the federal government begins to means test the 30 per cent private health insurance (PHI) rebate in the coming months.
From July 1, some Australian private health cover policyholders will see their rebate reduced.
Three income thresholds will be introduced for singles earning from $84,000 and families with a combined income of at least $168,000.
Families earning between $168,001 and $194,000 will see the 30 per cent private health insurance rebate reduced to 20 per cent.
A ten per cent rebate will apply to families with incomes between $194,001 and $260,000, while those earning more than $260,000 will not receive any rebate.
However, sole parents may be relieved to know that their incomes will be classed under the family threshold – rather than the single income earners threshold – and single parents earning less than $168,000 per year will continue to receive the full 30 per cent rebate on their premiums.
This access to the full family income threshold means that sole parents will also be eligible for threshold increases of $1,500 per dependent child after the first.
Changes to the federal government's rebate scheme may be a confusing time for many households, so Health Insurance Consultants Australia (HICA) has produced a brochure to help Australians learn more about the upcoming changes.
This helpful guide is available on the HICA website, or you can also give us a call on 1300 44 22 01 to arrange a hard copy to be mailed out to you.