What is the Lifetime Health Cover loading?
Once you turn 31, you’ve got until the following 1 July to buy private hospital cover and avoid paying the loading.
For every year you delay, you may have to pay an additional 2% on top of the cost of your private hospital cover.
How does Lifetime Health Cover loading work?
The Lifetime Health Cover loading was introduced by the Australian Government in July 2000 to encourage people to take out private hospital insurance at a younger age and maintain it over time.
Once you turn 31, you’ve got until the following 1 July to buy private hospital cover and avoid paying the loading.
For every year you delay, you may have to pay an additional 2% (up to a maximum of 70%) on top of the cost of your private hospital cover. The good news is that the loading doesn’t last a lifetime. Once you have held private hospital cover for 10 continuous years, the loading will be removed.
FAQs
Does everyone have to pay?
The Lifetime Health Cover loading applies if you didn’t have private hospital cover
- on 1 July 2000, OR
- by 1 July following your 31st birthday, whichever is later
How does Lifetime Health Cover loading affect couples and families?
If you and your partner have been without cover for different lengths of time, your Lifetime Health Cover loading will be calculated by averaging out the two.
For example, if you’re paying a 4% loading, and your partner has a 10% loading, that will be averaged out to 7% on a couple or family policy.
What happens when you switch to a new health fund?
The old fund will provide your new health fund with a transfer certificate. This certificate has information about your previous cover including your Lifetime Health Cover loading plus details about any waiting periods you’ve already completed, so that these can be applied to your new cover.
That means that your Lifetime Health Cover loading moves with you.
Can you have gaps in hospital cover?
Can you suspend your private hospital cover?
I'm going overseas for 1 year or more, how will this affect my Lifetime Health Cover loading?
For example, if your private hospital cover costs $1,000 per year
Buy cover at age 31
-
0% Lifetime Health Cover loading
Once you turn 31, you’ve got until the following 1 July to buy private hospital cover -
$0 extra Lifetime Health Cover loading a year
As long as you maintain your private hospital cover, you’ll avoid paying any Lifetime Health Cover loading -
$0 extra Lifetime Health Cover loading over 10 years
Enjoy the benefits of private hospital cover without having to pay extra loading
Wait until you turn 50
-
Up to 40% Lifetime Health Cover loading
For every year you delay, you may have to pay an extra 2% for your private hospital cover -
About $400 extra Lifetime Health Cover loading a year
The longer you delay, the more it can cost—up to a maximum of 70% loading -
About $4,000 over 10 years
You can get the same level of cover, it can just cost you more for the first 10 years
Still got questions
Find the answers to your questions below, or to find out more about how the Lifetime Health Cover loading affects your health insurance premium or if you’d like us to request a transfer certificate from your previous health fund, call us on 13 29 39.
You can also visit the Private Health website or ATO website. If you have specific tax-related questions, contact your registered tax agent.
