No Tax Consequences of HBF Private Health $20-$140 Credit
As a HBF private health policyholder – you may have received between $20 and $140 credit into your bank account.
The payment is tax free – it is not income and isn’t included in your tax return.
The payment doesn’t affect your tax return in any way.
Because it is only a payment because you couldn’t claim health insurance benefits (e.g. because of lockdown you couldn’t go to the physio) – it isn’t a refund of your health insurance premium – so the health insurance premium amounts don’t change.
Similarly if you purchased Clothes and then returned them – the credit is simply a return of a personal expense and isn’t taxable income.
More Information from the HBF website and the original email received are below.
This payment is in lieu of health insurance benefits that members could have claimed; it is not a refund of health insurance premiums that members paid, so it does not change the health insurance premium that you can claim a rebate on.
As this payment is in lieu of health insurance benefits that members could have claimed, it is not taxable income.
If you need advice on filling out your tax statement, we encourage you to talk to your tax agent.
HBF will be making a payment of between $20 and $140 per eligible policy. The amount depends on the membership type (e.g. single, couple, or family), and the type of cover (Hospital and/or Extras) you held between 25 March 2020 and 30 June 2020.
Your HBF COVID-19 payment
I’m writing to let you know that HBF is delivering on a promise we made to our members over 12 months ago.
In a year when affordable health care became more important than ever, HBF made a commitment to our members that we would not benefit financially from the COVID-19 pandemic.
We promised that if HBF recorded any extra profits as a result of members not being able to use their health cover due to the temporary suspension of non-urgent hospital and ancillary treatment, this money would be returned to them.
I’m pleased to tell you that HBF is returning $42 million to members who held Hospital and/or Extras cover between 25 March 2020 and 30 June 2020.
What does this mean for you?
We have transferred $140.00 to the direct credit account we have on record for you.
The amount you received takes into account your membership type (e.g. single, couple, or family), and the type of cover (Hospital and/or Extras) you held during the impacted period.
This payment aligns with our values as a not-for-profit health fund that is committed to putting members first and doing the right thing. It comes in addition to other COVID-19 financial hardship measures we have implemented, including being the only major private health insurer to cancel our premium increase in 2020.
If you have any questions, visit our information hub at hbf.com.au/covidpayment and we’ll be happy to help.