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
This hospital cover includes a wide range of common services and procedures, such as
- Cover for things like Joint reconstructions and dental surgery
- Accidental injury benefit
- Unlimited Emergency Ambulance^
Medibank Bronze Plus Progress
Invest a little more to get more cover
All the inclusions of Medibank Basic Plus Healthy Start plus the following.
- Chemotherapy, radiotherapy and immunotherapy for cancer
- Colonoscopy
- Bone, joint and muscle
Medibank Bronze Plus Progress
Invest a little more to get more cover
All the inclusions of Medibank Basic Plus Healthy Start plus the following.
- Chemotherapy, radiotherapy and immunotherapy for cancer
- Colonoscopy
- Bone, joint and muscle
Medibank Silver Plus Support
Invest more to get more cover
All the inclusions of Medibank Bronze Plus Progress plus the following.
- Broader range of services
- Heart and vascular system
- Plastic and reconstructive surgery (medically necessary)
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 $93,000 as a single (or $186,000 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
# 'Income’ and 'dependants' for Medicare Levy Surcharge purposes Learn more
For independent private health insurance advice, visit privatehealth.gov.au.
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
