Here's the tax info too:
Table 1: Income thresholds
Base tier (no change) Tier 1 Tier 2 Tier 3 Singles $84,000 or less $84,001-97,000 $97,001-130,000 $130,001 or more Families* $168,000 or less $168,001-194,000 $194,001-260,000 $260,001 or more Private health insurance rebate entitlement Under 65 years old 30% 20% 10% 0% 65-69 years old 35% 25% 15% 0% 70 years old or over 40% 30% 20% 0% Medicare levy surcharge Rate 0.0% 1.0% 1.25% 1.5%
* The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child.
From here http://www.ato.gov.au/individuals/co...246.htm&page=2
So Monnie24 - your PHI doesn't give you something back or a rebate in your return (unless you don't claimed the federal government rebate as a reduction in premium- then you get some back in tax).
It does work for those earning over 168K as a family with one child (see table for more info) to limit the amount they pay for Medicare.
Everyone (except for some low income earners) pay the basic 1.5% Medicare Levy. Those in the table as high income earners also pay an additional 1, 1.25 or 1.5% Medicare Levy Surcharge (MLS). Having a private hospital cover (must be hospital) with a $500 Excess or less, will exempt a high income earner from paying the additional MLS (everyone still has the pay the standard 1.5% though).
Hope that makes a little sense.