Monday, 7 May 2012

Market Wrap | 08.05.2012

Tiered private health insurance rebate and MLS introduced

From 1 July 2012, an individual’s rebate for private health insurance and/or their Medicare levy surcharge will be based on their income tier.

The definition of income is based on the definition used to calculate Medicare levy surcharge for individuals or families

Legislation supporting these changes received Royal Assent on 4 April 2012.

Table: Income thresholds for 2012/13
Unchanged
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
Rebate
Aged under 65
30%
20%
10%
0%
Aged 65-69
35%
25%
15%
0%
Aged 70 or over
40%
30%
20%
0%
Medicare levy surcharge
Rates
0.0%
1.0%
1.25%
1.5%
Last updated on 12/04/2012.

This is intended as general advice only and does not have regard to an investor’s objectives, financial situation or needs. Before acting, investors should consider the advice in light of their own circumstances.

Indices:

The All Ordinaries Index has moved up over the past week increasing 22 points (or +0.5%) since closing last Friday to 03:20 pm this Friday.
                                                                                                                                       
The rest of the world as measured by the MSCI index is down 14 points (or -1.1%) from closing last Friday to end of trade Thursday.

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