Was looking online for the cheapest health insurance policies for tax reduction and came across this article from Choice which went through the cheapest (not best coverage) policies available for tax minimisation.

These policies are good for avoiding tax and loadings, but they provide very little health cover, and are NOT recommended by CHOICE.

These policies are essentially only useful for tax minimisation purposes but have essentially minimal to no cover outside of what you are already covered for by Medicare.

Only go for these policies if you have no intention of using your private health insurance coverage AND only want a policy for tax minimisation only.

For those that are unaware, anyone earning over $90k/year is subject to the Medicare Levy Surcharge

This is an additional 1-1.5% tax loading on your total taxable income. So if you earn $90,001, you will have to pay an additional $900 in taxes. As almost all of the policies below are under $900 for people earning $90-105k (except for (Vic and Tas), you would be better off paying for a useless health insurance policy rather than paying the additional tax.

Medicare Levy Surcharge

A 1% tax applies on your income if you don't have hospital insurance and you earn more than $90k as a single (double that for couples and families). If you earn more than $105k you pay 1.25% and if you earn more than $140k you pay 1.5%. If you take out hospital insurance, you're exempt from the tax, and in many cases it's cheaper to pay for hospital insurance than to pay the tax.

These prices are current until the next price increase on the 1st April 2020.

NSW/ACT - Frank (GMHBA) Basic 500 ($500 excess)



Annual Income Annual Premium <$90k $781 $90-105k $868 $105-140k $955 >$140k $1042

QLD - Westfund $750 Basic



Annual Income Annual Premium <$90k $658 $90-105k $731 $105-140k $805 >$140k $878

Victoria - AHM (Medibank) Starter Basic



Annual Income Annual Premium <$90k $839 $90-105k $993 $105-140k $1027 >$140k $1120

South Australia - AHM (Medibank) Starter Basic



Annual Income Annual Premium <$90k $794 $90-105k $882 $105-140k $971 >$140k $1059

Western Australia - AHM (Medibank) Starter Basic



Annual Income Annual Premium <$90k $660 $90-105k $700 $105-140k $771 >$140k $841

Tasmania - AHM (Medibank) Starter Basic



Annual Income Annual Premium <$90k $817 $90-105k $908 $105-140k $999 >$140k $1090

Northern Territory - HCF Accident Only

