Introduction

Private health insurance is an essential consideration for many Australians, offering potential rebates and exemptions from the Medicare levy surcharge. Reporting your private health insurance details accurately in your tax return ensures that:

• You receive your correct private health insurance rebate entitlement.
• Any potential tax offsets or liabilities are calculated correctly.

What Counts as Private Health Insurance Coverage?

You must complete this section if, at any time, you:

• Held private health insurance coverage (either individually or as part of a family policy).
• Paid for a dependent-person-only policy.

Dependent Person Coverage: If you were under 32 years old or have a disability, you might be covered as a dependent under a family policy.

Eligibility

To complete the Private Health Insurance Policy Details section, you must:

1. Be covered by a registered private health insurance policy.
2. Have access to your private health insurance statement (optional but recommended).
3. Understand your tax claim codes and their implications for your rebate entitlement.

Allowable Information to Report

When reporting your private health insurance details, you must include the following, as shown on your private health insurance statement:

• Health insurer ID
• Membership number
• Premiums paid (eligible for a government rebate)
• Rebates received (Australian Government contributions)
• Benefit code (to identify your rebate tier)

Steps to Complete Your Tax Return

1. Obtain Your Private Health Insurance Statement:
   • Request this from your insurer if you have not received it. Ensure all details are accurate.
2. Transfer Policy Details to Tax Return:
   • Copy the health insurer ID, membership number, premiums, rebates, and benefit code exactly as shown on your statement.
   • If your statement includes multiple rows of data, transfer each row separately.
3. Determine Your Tax Claim Code:
   • Identify whether you are single, married, or in a de facto relationship.
   • Select the appropriate tax claim code based on your circumstances and whether you are claiming your share or your spouse’s share of the rebate.

Examples

Example 1: Sarah's Private Health Insurance Rebate
Sarah, a single individual, held a private health insurance policy for the entire 2022–2023 financial year. Her insurer provided a statement with the following details:

• Health insurer ID: ABC123
• Membership number: 987654
• Premiums eligible for a rebate: $1,200
• Rebate received: $300
• Benefit code: 30

Sarah transferred these details to her tax return under the appropriate fields and selected Tax Claim Code A (no dependents) to complete the section.

Example 2: Mark and Lisa's Shared Policy
Mark and Lisa, a married couple, were covered under the same policy for the full financial year. They agreed Mark would claim the rebate for both of them. Lisa provided her private health insurance statement to Mark, who:

• Transferred both their details using Tax Claim Code C.
• Ensured accuracy by checking all data against their statements.

Importance of Keeping Records

Accurate record-keeping ensures smooth reporting and faster tax return processing. Maintain:

• Your private health insurance statement
• Communication with your insurer for policy changes
• Tax records for rebates and exemptions claimed

Real-Life Scenario: John’s Family Policy

John, married with a dependent child, held a family policy for 2023–2024. His statement included multiple rows for premiums and rebates. John transferred these details into his tax return, using:

• Tax Claim Code C for his share
• Tax Claim Code B for the dependent-person-only policy covering his child

By keeping detailed records, John ensured accurate rebate entitlement and avoided delays.

FAQs

Q: What happens if I do not have my private health insurance statement?
A: Contact your insurer to request a statement. Your tax return might be delayed if incorrect information is provided.

Q: Can overseas visitors claim a private health insurance rebate?
A: No. Overseas visitors not eligible for Medicare are not entitled to the private health insurance rebate and should not complete this section.

Q: How are premiums and rebates split for family policies?
A: Family policies typically allocate premiums and rebates equally among covered adults unless specified otherwise by the insurer.

Q: What is the Benefit Code?
A: The Benefit Code identifies your government rebate tier. It is shown on your private health insurance statement and must be transferred accurately to your tax return.

Q: Can I claim my spouse’s share of the rebate?
A: Yes, if both of you were covered under the same policy for the same period. You must agree with your spouse on who will claim the rebate.