To receive Premium Subsidies, why is the household monthly income per person criteria set at $3,600 (Applicable for Renewals From 1 October 2024)? Does this mean if I earn above $3,600, I am considered high income and cannot receive any Premium Subsidies?
The $3,600 figure refers to the household monthly income per person, which is based on the total income earned by a family staying in the same residential address, divided by the number of members of that family.
So, if the total income earned by family members is $14,000, and there are four members in the family, then the household monthly income per person is $3,500, and the family would qualify for subsidies.
This is a fairer way of calculating the need for subsidies, because a family with more members may need more support, even if the total income they make is quite high.
Families in a lower household income category will get a higher subsidy rate. In this way, more help is given to those who have less resources, in line with being a compassionate and inclusive society.