The federal government has, for a long time, encouraged Australians to get private health insurance, in an attempt to reduce the financial burden on the public health system.
To make private health insurance more attractive, the government has a strategy of carrots and sticks. Low-income and older people receive subsidies through “premium rebates”. High-income earners without the right policy face the Medicare Levy Surcharge, ranging from 1 to 1.5% of their taxable income.
