Medicare Levy Surcharge Calculator

The Medicare Levy Surcharge applies if your annual income is over $105,000 as a single (or $210,000 as a single parent, couple or family) and you or any of your dependants^# don't hold an appropriate level of private Hospital cover. It’s calculated between 1% 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. It is calculated during your tax return process and is separate from the Medicare Levy.

However, if you and all your dependants^# take out Medibank private Hospital cover and hold it for the full tax year, you could avoid the Medicare Levy Surcharge.

You could avoid the Medicare Levy Surcharge if you and your dependants have eligible private Hospital cover for the entire financial year. Any level of private Hospital cover qualifies, as long as the excess does not exceed $750 for singles or $1,500 for couples and families.¹ For example, Medibank Basic Plus Select provides you with a level of Hospital cover that exempts you from the MLS.

Since the Medicare Levy Surcharge is calculated based on the financial year, taking out private Hospital cover partway through means you'll only be exempt from the surcharge for the time you maintained your policy. You will have to pay the surcharge for the days which you did not hold private Hospital cover.