What is the Medicare Levy Surcharge?
Based on your means tested taxable income, the Medicare Levy Surcharge is an additional 1.0 – 1.5% surcharge that is imposed on higher income earners who are eligible for Medicare but do not have private Hospital cover.
If this surcharge applies to you, your Medicare levy increases from 2.0% (which is what most Australians pay) to 3.0 – 3.5% of your taxable income.
Income thresholds and surcharge from 1 July 2023
|Income for Medicare levy surcharge purposes
||Medicare levy surcharge|
|Singles less than $93,000
Couples/families less than $186,000
|Singles $93,001 – $108,000
Couples/families $186,001 – $216,000
|Singles $108,001 – 144,000
Couples/families $216,001 – $288,000
|Singles more than $144,001
Couples/families more than $288,001
Note: For single parents and couples with children for MLS purposes, the family income threshold increases by $1,500 for each child after the first.
Income, child and dependant have special definitions for MLS purposes. For more information, see the ATO website
We can help you avoid it
Couple or family earning more than $186,000 yearly? You and all the members of your family need to have Hospital or combined Hospital and Extras cover to avoid the MLS.
Is there a dependant on your family cover whose income is above the Medicare levy threshold? They should seek their own tax advice as they may not be exempt from the Medicare Levy Surcharge.