What is the Medicare Levy Surcharge (MLS)?
Australian taxpayers contribute to the cost of public health care through the Medicare Levy. If your income is over a certain threshold, you have 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 on the public hospital system. The amount you’ll pay depends on your annual income, as shown in the table below.
To avoid paying the Medicare Levy Surcharge we recommend taking out our Baic+ Hospital cover. This entry-level cover is our most affordable yet and is ideal for those seeking private hospital insurance for tax purposes.
| Medicare Levy Surcharge | 0.00% | 1.00% | 1.25% | 1.50% |
|---|---|---|---|---|
| Singles | $93,000 or less | $93,001 - $108,000 | $108,001 - $144,000 | $144,001 or more |
| Families (including single parents and couples) | $186,000 or less | $186,001 - $216,000 | $216,001 - $288,000 | $288,001 or more |
The income threshold levels for couples includes de facto couples. For families with children, the thersholds are increased by $1,500 for each dependent child after the first.
You can find more information about the Medicare Levy Surcharge from PrivateHealth.gov.au or the Australian Taxation Office.
