Every year, CBHS issues a Private Health Insurance Statement to all adults who were covered by CBHS during the financial year.
Why do I need this statement?
Your Private Health Insurance Statement contains important information to help complete your Tax Return. You will need your Private Health Insurance Statement to evidence your rebate entitlement for tax purposes.
What information is in this statement?
- The premiums you have paid to CBHS during the financial year that are eligible for the Australian Government rebate
- The amount of rebate you received during the financial year
- If you are the main member, your statement will outline the details of any other adults who were on your membership at any point during the financial year.
- If you were covered on someone else's membership (your partner's, for example) your statement will also show their details.
- The statement also tells you the number of days you had an appropriate level of Private Patient Hospital cover during the financial year. This will assist you see if you will have to pay an extra Medicare Levy Surcharge.
Why were there two statements issued?
Each adult covered by the policy will receive their own private health insurance statement listing their share of the premium payments and rebate (if any) received from the government. If you and your spouse were covered under the same membership, your spouse will receive their own statement.
How do I read my tax statement?
A – Number of days with appropriate hospital cover. The number of days in the 2016/17 financial year that you had hospital cover with CBHS.
B – Health Insurer ID A three letter identifier unique to each fund. This is CBH for CBHS members.
C – Membership Number Your membership number which identifies your policy with CBHS.
J – Your premiums eligible for Australian Government Rebate Includes each adult’s share of premiums in this financial year that are eligible for the rebate. - If there is a LHC loading applied to the policy, the amount of loading paid is not included in this amount. - If there is more than one adult on the policy, the amount will be split over the two statements.
K – Your Australian Government Rebate received Includes each adult’s share of the rebate paid by Medicare directly to CBHS in the current financial year. If there is more than one adult on the policy, the amount will be split over the two statements.
L – Benefit code Indicates which (maximum) age based rebate percentage is applicable and when the premium was paid. Due to rebate changes made on 1 April 2017, any premiums received on or after this date will have a different benefit code to premiums made prior to this date.
Other adult beneficiaries for the policy Indicates the name of any other adult covered by the policy when the relevant premiums were received.
Additional notes to help you understand your statement and understanding multiple rows on the table:
Different lines show changes to the policy where:
- The benefit code has changed (eg an adult on the policy has had a birthday that entitles them to a higher level of rebate or as a result of the rebate changes on 1 April 2017), or
- -- There have been changes to the adults on the policy (ie another adult has joined or left the policy).
As the rebate changes on 1 April each year, any member who paid premiums prior to and on or after 1 April 2017 will have at least two lines of information.
Understanding Benefit codes:
(L) The benefit code indicates the (maximum) aged based rebate percentage that applies at the time the payments were received.
The code listed is not a percentage and does not indicate what tier you have elected to be on.
If you made payments prior to and on or after 1 April 2017, at least two different benefit codes will appear in separate lines on your table.
Benefit codes for premium amounts received prior to 1 April 2017 are:
- 30 (the entitling person is under 65 years)
- 35 (the entitling person is 65 years or older but under 70 years)
- 40 (the entitling person is 70 years or older)
Benefit codes for premium amounts received on or after 1 April 2017are:
- 31 (the entitling person is under 65 years)
- 36 (the entitling person is 65 years or older but under 70 years)
- 41 (the entitling person is 70 years or older)
What is the Medicare Levy Surcharge (MLS)?
The MLS is a government incentive to encourage individuals to take out private hospital cover and is an additional payment incurred on top of the Medicare Levy that most Australians have to pay. You will only be impacted by the MLS if your income (as assessed by the ATO for this purpose) is over $90,000 for singles or $180,000 for families or couples and you don’t have an appropriate level of private hospital cover. The MLS ranges between 1 to 1.5% of your income, on top of the 2% Medicare Levy (depending on your income). Find more information on MLS.
What if I pay a Lifetime Health Cover Loading (LHC)?
This will be shown on the membership summary, that you have received. Members that have registered an email address with CBHS will receive their statement by email. For more information on LHC.
Will my child covered on my policy receive a Private Health Insurance (Tax) Statement?
Dependent children do not receive their own Private Health Insurance (Tax) Statement because they cannot claim the Rebate and are not subject to the income test for private health insurance purposes.
However, if your child is completing a tax return they may need to complete the private health insurance policy detail section of their return, so the ATO can verify their private health insurance coverage and ensure that they are not charged the Medicare Levy Surcharge (if their income is above the threshold).
To complete the Private Health Insurance Section of their tax return they will need to obtain a statement from one of the adults covered on the policy and follow the below steps.
Using the Private Health Insurance Statement of an adult on the policy (using the Health Find ID –SPE and the Membership Number), complete your individual tax return as per the ATO instructions.
Type or write Tax claim code F.
Where can I find out more?
If you want further information, you can call CBHS on 1300 654 123 however we are unable to provide specific tax advice. Additionally, you can contact the Australian Tax Office on 132 861, visit their website at ato.gov.au, or speak to your tax advisor.