Medicare Levy Surcharge

The government imposes an extra surcharge on the normal Medicare Levy if your income is over a certain threshold and you don't have private hospital cover. The aim is to encourage people with higher incomes (see table below) to take out private hospital cover and, use the private hospital system to reduce the demand on the public system. If the surcharge applies to you and you don't have appropriate hospital cover, your Medicare Levy may increase, see below.

Income levels (2016-17)
Singles $90,000
or less
$90,001 -
$105,000
$105,001 -
$140,000
$140,001
or more
Families $180,000
or less
$180,001 -
$210,000
$210,001 -
$280,000
$280,001
or more
Medicare Levy Surcharge 0.0% 1.0% 1.25% 1.5%


For more information on the Medicare Levy Surcharge, visit the Australian Taxation Office's website.