What is the Medicare Levy Surcharge?

Australian taxpayers contribute to the cost of public health care through the Medicare Levy. If your income is over a certain threshold, you may also need to pay the Medicare Levy Surcharge, unless you have private hospital cover.

This surcharge encourages those with higher incomes to take out private health insurance and use the private hospital system, reducing demand for the public system. The amount you’ll pay depends upon your income, as shown in the table below.

Income levels

2018 - 2022
Singles	$90,000 or less	$90,001 - $105,000	$105,001 - $140,000	$140,001 or more
Families, including couples and single parents	$180,000 or less	$180,001 - $210,000	$210,001 - $280,000	$280,001 or more
Medicare Levy Surcharge	0.00%	1.00%	1.25%	1.50%

The threshold for families applies to couples and single parents as well, and increases by $1,500 for each dependent child after the first.

You can find more information about the Medicare Levy Surcharge from the Australian Taxation Office.

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