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Medicare Levy Surcharge Calculator

If your annual income* is over $90,000 as a single (or $180,000 as a couple/family) and you 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 avoid this extra tax, and that’s by taking out hospital cover.

Use our Medicare Levy Surcharge Calculator to do the maths.

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

Tax calculator

How much extra tax could you pay without hospital cover?

and earning

Why not invest that money in your health

Hospital Essentials

from

$859.00*/yearly

This is our starter hospital cover

  • Cover for things like knee reco, surgical removal of wisdom teeth & minor gynaecology
  • Accidental injury benefit
  • Unlimited Emergency Ambulance Australia-wide^

Core Hospital

from

$932.00*/yearly

Invest a little to get more cover

All the inclusions of Hospital Essentials plus the following.

  • Chemo or radiotherapy for cancer
  • Broader hospital services including Colonoscopy
  • Other in-hospital services where a Medicare benefit is payable unless they are Restricted or Excluded

Core Hospital

from

$1958.40*/yearly

This is our starter hospital cover for families

  • Accidental injury benefit
  • Cover for colonoscopies, tonsils & knee reco
  • Chemo or radiotherapy for cancer
  • No hospital excess for kids on a family membership
  • Unlimited Emergency Ambulance Australia-wide^

Standard Hospital

from

$2510.40*/yearly

Invest a little to get more cover

All the inclusions of Core Hospital plus the following:

  • Heart-related medical & surgical admissions
  • Major gynaecological surgery
  • Vascular surgery

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 couple/family) and you don't hold an appropriate level of hospital cover. It starts at 1% and increases (up to 1.5%) with income growth. The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

However, if you take out Medibank hospital cover and hold it for the full tax year, you can avoid paying the Medicare Levy Surcharge completely. Plus you can enjoy knowing that your health is in good hands.

Read more about Medicare Levy Surcharge

*‘income’ for Medicare Levy Surcharge purposes. 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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