Medicare Levy Surcharge
* Based on an Australian Government Rebate of %, % LHC loading, $ excess for a in .
Change your cover or compareWhat is the Medicare Levy Surcharge?
The Medicare Levy Surcharge is an extra 1.0-1.5% surcharge that’s added to the tax of high income earners who are eligible for Medicare, but don’t have private Hospital cover.
If that’s you, your Medicare levy increases from 2.0% (what most of us pay) to 3.0-3.5% of your taxable income.
Income thresholds and surcharge from 1 July 2023
| Income for Medicare levy surcharge purposes |
Medicare levy surcharge |
|---|---|
| Singles less than $93,000 Couples/families less than $186,000 |
0.0% |
| Singles $93,001 – $108,000 Couples/families $186,001 – $216,000 |
1.0% |
| Singles $108,001 – 144,000 Couples/families $216,001 – $288,000 |
1.25% |
| Singles more than $144,001 Couples/families more than $288,001 |
1.5% |
Note: For single parents and couples with children for MLS purposes, the family income threshold increases by $1,500 for each child after the first.
Income, child and dependant have special definitions for MLS purposes. For more information, see the ATO website
We can help you avoid it
Single and earning more than $93,000 a year? Take out any Teachers Health Hospital or Combined cover to be exempt from the MLS.
Couple or family earning more than $186,000 yearly? You and all the members of your family need to have Hospital or combined Hospital and Extras cover to avoid the MLS.
Is there a dependant on your family cover whose income is above the Medicare levy threshold? They should seek their own tax advice as they may not be exempt from the Medicare Levy Surcharge.