Shannon is taking out private health cover prior to his 25th birthday. When completing the application form, he provides the following details: he is single, has never been married, earns $65,000 annually and would classify himself as a 'smoker', although he is trying to quit. Which of the following is true about Shannon's cover? 

He will be in the Tier 1 income threshold for rebate entitlement. 

He will pay higher premiums than others, given his smoker status

 He can choose to have a hospital or general treatment policy, or both. 

He can only receive a benefit of 70% of his income.