Private Health Insurance Policy Details

On 9 August 2019, Barry takes out private health insurance for the entire family with Bupa (BUP). This covers him and his family for the 327 days from 9 August 2019 to 30 June 2020 inclusive.

His combined policy (C) covers all family members and is the most comprehensive health policy available providing both private patient hospital cover and ancillary cover for all members of his immediate family. On the 9^th day of each month, Barry pays his monthly premium for this family policy.

Barry provides you with the private health insurance statement that he receives from Bupa in respect of the 2020 financial year. The key details from Barrys private health insurance statement are summarised below.

BUP Membership Number	Your Premiums eligible for the Australian Government rebate	Your Australian Government rebate received	Benefit Code	Other Adult Beneficiaries included in this Policy
4891662	$2,064	$536	30	Natasha White
4891662	$725	$184	31	Natasha White

Barry advises you that he wishes to claim his share of the rebate entitlement (which is shown above) in relation to his policy in his income tax return.

His wife, Natasha, also received the same statement from Bupa (with the same membership number) and will claim her rebate entitlement (which are the same figures that relate to Barry, as above) in her own income tax return.

Hence, please use the "C" tax claim code at Item M2 in Barry's tax return

Determine assessability and deductibility income

Then please calculate the assessable income for the financial period 2020.

Gross Salary and Wages

During the entire 2020 income year, Barry worked solely for The Brisbane Telegraph Ltd.

Barry provides you with the following information that he downloaded from his MyGovID portal which summarises payroll information from his employer in relation to the period 1 July 2019 to 30 June 2020.

The information contained on his 2020 Income Statement is summarised below:

Name of Payer: The Brisbane Telegraph Ltd

ABN of Withholder: 13 090 861 509

Gross Salary: $142,700

PAYG Tax Withheld: $36,144

Reportable Fringe Benefits Amount: $5,125

Reportable Employer Superannuation

Contributions: $6,500

The reportable fringe benefit amount of $5,125 shown above related to a salary-sacrifice arrangement that the firm has in place with all of its senior journalists. Barry arranged for The Brisbane Telegraph Ltd to pay several personal expenses on his behalf. These expenses were all subject to fringe benefits tax.