Health is our most important asset. This is why investing in a health fund after you have left the ADF may be a wise choice. Here are some of the benefits that having private health cover can bring:
1. Choosing your doctor or surgeon
Private health cover allows you to choose your own doctor. When it comes to making decisions about the health and wellbeing of you and your family, choosing a doctor or surgeon who you trust creates peace of mind. On the other hand, in a public setting, the doctor who is on call on the day will be the one carrying out the procedure or treatment.
2. Benefit from ancillary (extras) services
Not all medical procedures or services are bulk billed by Medicare, therefore your private health fund, depending on your level of cover, may provide benefits towards some of the out-of-pocket expenses. The most commonly used services such as dental, chiropractic, physiotherapy and remedial massage are not covered by Medicare. If you and your family go to the dentist for regular check-ups, wear glasses or often seek treatments from an osteopath or physiotherapist, you should consider if you will be financially better off by taking out ancillary (extras) cover.
3. Avoid the Medicare Levy Surcharge
The Medicare Levy Surcharge can affect your income. If in the 2025-2026 income year, commencing July 1, you earn above $101,000 a year as a single or $202,000 a year as a family, you may be subjected to a surcharge in addition to the Medicare Levy. However, having an appropriate level of private hospital cover for you and any dependents for the full financial year could help you avoid the additional Medicare Levy Surcharge.
For further information, please refer to the Medicare Levy Surcharge page on the Australian Taxation Office website.
4. Avoid Lifetime Health Cover
Lifetime Health Cover is a Government initiative that is designed to encourage people to take out private hospital cover and maintain it for life.
If you do not have private hospital cover, you could be subjected to the Lifetime Health Cover loading when you decide to take out cover after the 1st of July following your 31st birthday. This means that you will have a 2% loading for each year you are over 30 years of age (to a maximum of 70%) on your hospital cover premium if you choose to take out hospital cover later on. Your loading is then removed after 10 continuous years of hospital cover.
Full-time ADF members also have special conditions if you discharge after the LHC deadline. These special conditions include: <br
- If you joined the ADF prior to 1 July 2000, your entry age will be treated as 30 for LHC purposes on discharge
- If you joined the ADF on or after 1 July 2000, your age for LHC purposes is that at which you entered the ADF, unless you have previously held private health cover
For example, if Harry joined the Army full-time in June 1998 at the age of 26 and served until June 2021, Harry’s age for LHC purposes is considered 30 when he transitioned from the ADF and will start incurring LHC loading from his discharge date.
Find out more information on Lifetime Health Cover by clicking here.
5. Treatment when you need it
Belonging to a health fund means you are likely to receive treatment sooner at a private hospital, as you may avoid the lengthy waiting lists that usually come with the public hospital system. This can be beneficial if you require surgery once you have been discharged from the ADF, enabling you to get back to doing what you love sooner!
Blog post by Complete Corporate Wellness. Visit completecorporatewellness.com.au for more information.
