June 30 is coming up, and if you’ve been thinking about private health insurance, it’s a natural question: Should you get covered before the end of the financial year?
Short answer: It may not reduce the tax you pay this financial year... but it can help you avoid extra costs next year and set yourself up properly
First things first: will you save on tax this year?
Let’s be clear upfront. Taking out hospital cover before June 30 may not reduce your tax bill for this financial year.
If you’ve already earned above the threshold and didn’t have cover during the year, you may still need to pay the Medicare Levy Surcharge (MLS).
That part is already locked in.
So why does timing still matter?
Because what you do now affects what happens next financial year and beyond.
Getting hospital cover sorted before June 30 means you’re going into the new financial year:
- Already covered from 1 July
- In a position to avoid MLS next year (if it applies to you)
- Starting your waiting periods now, not later
- Locking in your position for Lifetime Health Cover (LHC)
It’s less about fixing the past, and more about getting ahead of what’s next.
What is MLS (and who does it affect)?
The Medicare Levy Surcharge is an extra tax some Australians pay if they:
- Earn above:
-
- $101,000 (single), or
-
- $202,000 (couple/family)
- And don’t have eligible hospital cover
If it applies, you could pay an extra 1% to 1.5% of your income in tax.
👉 Learn more about how MLS works
Why getting cover now can still make sense
Even though it won’t change this year’s tax, taking out cover now means:
You could avoid MLS next financial year
If your income stays above the threshold, having hospital cover in place from 1 July can help you avoid paying the surcharge moving forward.
You start serving waiting periods now
Many services have waiting periods. Getting cover now means:
- You’re working through them earlier
- You’re ready to claim when you actually need to
👉 Read more about waiting periods
You lock in your LHC position
If you’re approaching 31, timing becomes even more important.
Getting cover in place helps you avoid Lifetime Health Cover loading, which can increase your premium later.
👉 Learn more about Lifetime Health Cover (LHC)
You’re covered when life happens
Not everything can be planned.
Having cover already in place means you’ve got options if something unexpected comes up, without scrambling to sort it out later.
So… should you get cover before June 30?
It depends on your situation, but here’s a simple way to think about it:
It’s worth considering if you:
- Expect to earn above the MLS threshold next year
- Are turning 31 soon
- Want to avoid waiting periods later
- Prefer to be set up rather than scrambling when something happens
You might not need to rush if you:
- Are well below the income thresholds
- Aren’t concerned about LHC yet
- Are still weighing up your options
The bottom line
Getting health insurance before June 30 isn’t about saving on this year’s tax.
It’s about:
- Avoiding extra costs next year
- Getting through waiting periods sooner
- Locking in your position for the future
In other words, it’s about starting the new financial year sorted, not playing catch-up later.
Ready to get set up?
If you’re already thinking about it, now’s a good time to take a look.
With see-u, we keep things simple:
- Hospital cover focused on what you’re more likely to need
- Options to help keep premiums down
- No paying for things you’re unlikely to use
Built to be compared. Easy to get started.
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