Understanding Superannuation and Health Insurance

The video tutorial explains the concept of net income, highlighting the difference between gross and net income. It delves into various deductions that affect net income, such as superannuation and health insurance. The tutorial also covers the importance of understanding these deductions for financial planning, including the implications of superannuation on retirement savings and the necessity of health insurance. Additionally, it discusses different levels of health insurance coverage and their associated costs, emphasizing the need for careful financial management.

What is the main difference between gross income and net income?

• Gross income includes taxes, net income does not.

• Net income is after deductions, gross income is before.

• Net income includes taxes, gross income does not.

• Gross income is after deductions, net income is before.

Why does the government enforce superannuation?

• To increase tax revenue.

• To ensure individuals save for retirement.

• To control inflation.

• To reduce unemployment rates.

What happens to superannuation funds if a person passes away?

• They are automatically transferred to the government.

• They are lost if not claimed immediately.

• They pass to the next of kin, but can be complicated to access.

• They are distributed among the deceased's friends.

Which of the following is a compulsory deduction from gross income?

• Grocery bills

• Entertainment costs

• Health insurance

• Vacation expenses

Why are membership fees considered deductions?

• They are used for personal savings.

• They are refunded at the end of the year.

• They are required for employment in certain fields.

• They are optional expenses.

What is the basic method to calculate net income?

• Add all expenses to gross income.

• Subtract all deductions from gross income.

• Multiply gross income by tax rate.

• Divide gross income by number of deductions.

What does 'basic' health insurance cover typically include?

• Specialist consultations

• All medical procedures

• Only emergency and common treatments

• Private hospital rooms

How does 'top' health insurance cover differ from 'basic'?

• It is only available to senior citizens.

• It costs less but covers more.

• It covers only emergency treatments.

• It covers a wider range of medical services.

What is a potential benefit of having 'intermediate' health insurance cover?

• No need for any out-of-pocket expenses

• Lower premiums than basic cover

• Access to private hospital rooms

• Coverage for rare medical conditions

Why might someone choose 'top' health insurance cover?

• To reduce their tax liability

• To ensure coverage for specialized treatments

• To avoid all medical costs

• To receive government subsidies