Private Health Insurance Rebate

Is it possible to claim a Private Health Insurance Rebate on your Aussie tax return if you are an Australian Citizen, never held a health insurance policy in Australia, then you have temporarily moved overseas for a year or two then took out an inpatient health insurance policy while you were overseas to cover yourself for inpatient private hospital treatment? Considering that all health insurance companies are basically international companies. Eg. Allianz is available as a coverage in Australia or if you take a policy when living in another country.

You are still paying Aussie tax so I would maybe it should be claimable?

 

A foreign policy is non-compliant. A non-resident taxpayer doesnt pay Medicare levy so the offset becomes ineligible (along with Medicare Levy Surcharge)

 

What about if you are still a resident therefore they still pay the Medicare Levy? It's nearly practically impossible to lose tax residency as the ATO wants to keep as many tax residents as possible. Especially when overseas for 2 years I doubt they will accept someone to claim that they're a non-resident. You have all your belongings and family ties still in Oz which fails a non-residency test.

How does the ATO know if the health insurance policy is a foreign policy or a local one?

 

The ATO receive datafeeds from the approved funds for eligible policies. Most funds have ceased giving the copies to the taxpayers and just send the data to the ATO to prefill. Some people who arrive here who cant use Medicare take out OVHC (Overseas Visitors Health Cover). Its also not eligible.

Its pretty accurate. If someone hands me a policy statement and its not with the ATO its makes me look at why. Its usually a non-eligible policy eg Excess of $1000, Ambulance only or just extras. Or only one taxpayer is covered not the whole family. One gave me a HK policy like you refer to...In HK many employers offer health cover. Its not suitable to avoid Medicare levy or the surcharge.

Absent taxpayers may also be impacted by lifetime loadings which add a premium when they do return.