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Medicare Levy Surcharge Calculator

If your annual income* is over $90,000 as a single (or $180,000 as a single parent/couple/family) and you or any of your dependants* don’t have an appropriate level of hospital cover, you may need to pay the Medicare Levy Surcharge. That said, there is a way to save money on this tax, and that’s by taking out hospital cover for you and all of your dependants*. Use our Medicare Levy Surcharge Calculator. *'income' and 'dependants' for Medicare Levy Surcharge purposes.

Medicare Levy Surcharge Calculator

How much extra tax could you pay without hospital cover?

Nice one! Looks like you might not have to pay the Medicare Levy Surcharge.

This is a guide only. It assumes you have no MLS dependants. You should speak to a financial advisor who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

Why not invest that money in your health

Medibank Basic Plus Healthy Start

from
/ year

This is our starter hospital cover

  • Cover for things like knee reco and dental surgery
  • Accidental injury benefit
  • Unlimited Emergency Ambulance^

Medibank Bronze Plus Progress

from
/ year

Invest a little to get more cover

All the inclusions of Medibank Basic Plus Healthy Start plus the following.

  • Chemotherapy
  • Colonoscopy
  • Bone, joints and muscles

Medibank Bronze Plus Progress

from
/ year

Invest a little to get more cover

All the inclusions of Medibank Basic Plus Healthy Start plus the following.

  • Chemotherapy
  • Colonoscopy
  • Bone, joints and muscles

Medibank Silver Plus Assured

from
/ year

Invest a little to get more cover

All the inclusions of Medibank Bronze Plus Progress plus the following.

  • Broader range of services
  • Heart and vascular admissions
  • Plastic and reconstructive

Waiting period and annual limits may apply.

^Tasmania and Queensland have State schemes that cover ambulance services for residents of those States.

*‘income’ for Medicare Levy Surcharge purposes. Learn more

What is the Medicare Levy?

Currently, everyone chips into the Australian public healthcare system, Medicare. Most taxpayers contribute 2% of their taxable income, unless they earn under a certain amount, in which case they don’t need to pay anything at all. This is referred to as the Medicare Levy.

In addition to the Medicare Levy, some taxpayers also need to pay a Medicare Levy Surcharge (MLS), a government scheme designed to help take the burden off the public system.

When does the Medicare Levy Surcharge apply?

The Medicare Levy Surcharge applies if your annual income* is over $90,000 as a single (or $180,000 as a single parent/couple/family) and you or any of your dependants* don't hold an appropriate level of hospital cover. It starts at 1% and increases (up to 1.5%) depending on your annual income*. The family income threshold for single parents, couples and families is increased by $1,500 for each MLS dependant child after the first child.

However, if you and all your dependants* take out Medibank hospital cover and hold it for the full tax year, you may not have to pay the Medicare Levy Surcharge. Plus you can enjoy knowing that your health is in good hands.

Read more about Medicare Levy Surcharge

*Price is for Singles cover in NSW paying by direct debit and includes an Australian Government Rebate of 25.059% (assumes under 65 years of age) with a 0% Lifetime Health Cover Loading and $750 excess (unless otherwise stated). Learn more

What about Lifetime Health Cover Loading (LHC)?

Once you turn 30, a 2% loading is added to your hospital cover premium for every year you’re without hospital cover. This is called the Lifetime Health Cover (LHC) loading.

You can avoid this loading by taking out and maintaining hospital cover before July 1st following your 31st birthday (this is known as your base day).

For example, if you take out hospital cover at 35, your LHC loading will be 10% of the base premium.

Read more about Lifetime Health Cover Loading

lifetime health cover loading

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