Following the introduction of a new rise in private health insurance premiums in Australia families could end up paying more than $3 (about £2) a week in their health fund, it has been revealed.

The hike came after private health insurers were allowed to raise the premiums by up to 6 per cent from April 1, 2008, said health minister, Nicola Roxon.

Last year premiums also saw an increase of 4.99 per cent, on average.

Meanwhile, the funds have warned that premiums could soar by up to 10 per cent and that the changes introduced by the government to the Medicare levy surcharge last year could result in a mass boycott.

However, private health membership reportedly rose by 54,000 people in the last three months of last year, reaching a record number in seven years.

The surcharge changes led to the income at which the tax kicks in for people without private health insurance rising to $70,000 (nearly £50,000) from $50,000 (£35,630) for singles and from $100,000 (about £71,000) to $140,000 (about £100,000) for couples.