Section 22‑40 Private health insurance family th - Private Health Insurance Act 2007 - 22‑40 Private health insurance family thresholds

22‑40 Private health insurance family th22‑40 Private health insurance family thresholds

Start here

Get a plain-English read of 22‑40 Private health insurance family th

Turn the raw legal text into a practical explanation grounded in Private Health Insurance Act 2007.

22‑40 Private health insurance family thresholds (1) A person’s family tier 1 threshold for a financial year is an amount equal to double his or her *singles tier 1 threshold for the financial year. (2) A person’s family tier 2 threshold for a financial year is an amount equal to double his or her *singles tier 2 threshold for the financial year. (3) A person’s family tier 3 threshold for a financial year is an amount equal to double his or her *singles tier 3 threshold for the financial year. (4) However, if the person has 2 or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999) who are children, increase his or her family tier 1 threshold, family tier 2 threshold and family tier 3 threshold for the financial year by the result of the following formula: ![Start formula $1,500 times open bracket Number of those dependants who are children minus 1 close bracket end formula](image.002.png) Example: If the person has 3 such dependants who are children, the person’s family tier 2 threshold for the 2021‑22 and 2022‑23 financial year is: ![Start formula $210,000 plus open bracket $1,500 times 2 close bracket equals $213,000 end formula](image.003.png) Note: A person may be a tier 1 earner, tier 2 earner or tier 3 earner if his or her income for surcharge purposes exceeds the applicable threshold for that tier: see section 22‑30.