Private Health Insurance Amendment (Income Thresholds) 2021

# Private Health Insurance Amendment (Income Thresholds) 2021 ## What it does This bill updates the income thresholds that determine whether high earners have to pay the Medicare Levy Surcharge (an extra tax penalty for not having private health insurance). The new thresholds are higher than before, so fewer people will be caught by the surcharge. ## Why it matters If you're a higher earner without private health insurance, this bill might save you money by pushing you below the income threshold where the surcharge kicks in. It essentially gives high-income earners more breathing room before the government penalises them for not having private cover. ## Key details - **New income thresholds** (from 1 July 2021): singles earning over $90,000 (tier 1), $105,000 (tier 2), or $140,000 (tier 3) will be affected - **Family thresholds also increased**: the example shows a family with 3 children now has a tier 2 threshold of $213,000 (previously lower) - **Automatic annual increases**: from 2023-24 onwards, these thresholds automatically adjust each year based on an indexation factor, so they'll keep rising with inflation

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