Medicare Levy Surcharge

Tax is never good news. But there is one tax you could do something about.


Taking out private hospital cover could help you avoid a tax called the Medicare Levy Surcharge (MLS).

How does the Medicare Levy Surcharge work?

The Medicare Levy Surcharge is applied to Australian tax payers who do not hold an appropriate level of private hospital cover and who earn above a certain income. The surcharge covers you and your dependants. The surcharge applies proportionately for the period during the tax year when an appropriate level of private hospital cover was not held.

The tables below outline the income thresholds and the surcharge that will apply from 1 April 2016 to 31 March 2017.

Singles

IncomeMedicare Levy Surcharge
Up to $90,0000.0%
$90,001 - $105,0001.0%
$105,001 - $140,0001.25%
$140,001 and above1.5%

Couples and families

Combined IncomeMedicare Levy Surcharge
Up to $180,0000.0%
$180,001 - $210,0001.0%
$210,001 - $280,0001.25%
$280,001 and above1.5%

Please note the threshold information above is a general guide only and may vary according to your particular circumstances. For more information visit www.ato.gov.au or speak with your financial adviser.


For more information about the MLS and how it could apply to you and any of your dependants, visit the Australian Taxation Office at www.ato.gov.au.