The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;

5. Medicare levy Surcharge health insurance excess bump

The Medicare levy Surcharge is not payable by higher income earnings individuals and families provided they have private health cover including appropriate hospital cover. Such cover is allowed to have an excess, and this permissible excess increases from July 1, 2019. For individuals, the allowable excess increases from $500 to $750 and for families the increase is from $1000 to $1500. Such a change will allow policy holders to access lower premiums by having higher excesses without incurring the Medicare levy Surcharge.

The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.

The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.