What is the Medicare levy surcharge?

Based on your means tested taxable income, the Medicare levy surcharge is an additional 1.0 – 1.5% surcharge that is imposed on higher income earners who are eligible for Medicare but do not have private Hospital cover. If this surcharge applies to you, your Medicare levy increases from 2.0% (which is what most Australians pay) to 3.0 – 3.5% of your taxable income.

Income for Medicare levy surcharge purposes
Medicare levy surcharge
Singles less than $90,000
Couples/families less than $180,000
Singles $90,001 – 105,000
Couples/families $180,001 – 210,000
Singles $105,001 – 140,000
Couples/families $210,001 – 280,000
Singles more than $140,001
Couples/families more than $280,001

You can avoid paying the Medicare levy Surcharge by taking out any of Teachers Health Fund’s Hospital or Combined Cover products if you are:

  • single and earn more than $90,000 a year
  • a couple/family earning more than $180,000 a year.