MLS - who pays it and how to avoid it | Compare The Market

MLS – who pays it, how to avoid it and other ways to save

 
 
 
 
 

It’s an unfortunate truth but Australians are unwittingly forking out extra at tax time due to a lack of knowledge surrounding the Medicare Levy Surcharge (MLS) and what it could mean for their back pocket.

An independent survey[1] of 1200 respondents from comparison service comparethemarket.com.au shows that 41% of adult Australians don’t understand the MLS.  Given the levy costs consumers a minimum of $900 per year in ‘penalty taxes’, this money could make a real difference to people’s household budgets.

The MLS applies to those who earn more than $90k as a single or $180k as a couple and do not have private hospital cover. These salaries might seem high at first glance but the average Aussie income of $81k[2] actually isn’t too far away from it.

Karan Seth is single and earns over $104k but is not affected by the MLS as she took out health insurance before being impacted: “MLS can be a burden for those earning above the threshold due to the yearly indexing of the income as well as not being signed up with a health provider. But you can avoid it altogether, by signing up with a health insurance provider like I did.”

“Once you’re covered with a registered health fund, this MLS isn’t applicable anymore, irrespective of what a person earns.”

Currently, you have to pay the surcharge if you don’t have hospital cover with a registered health fund and you are:

  • A single person with an annual taxable income for MLS purposes greater than $90k in the 2015-2016 financial year or
  • A family or couple with a combined taxable income for MLS purposes greater than $180k in the 2015-2016 financial year.

Aussies should read up now and understand how they can be affected financially this health season.

For further information, or for an interview with Karan, please contact:
Hannah Twiggs, PR Assistant, comparethemarket.com.au
Tel: 07 3377 8879
Email: hannah.twiggs@comparethemarket.com.au

About comparethemarket.com.au
Comparethemarket.com.au is a comparison website that makes it easier and quicker for Australians to compare and buy products and services they rely on in their everyday lives. Whether you’re looking for a good deal on your car insurance, health cover for you and your family, the lowest fuel prices in your area, or an energy provider that suits your needs, then go to comparethemarket.com.au. It’s a completely free service and enables Australians to make purchasing decisions with greater knowledge, confidence and savings. 

[1] An independent survey carried out by Pure Profile on behalf of comparethemarket.com.au. The 1200 respondents were individuals living in Australia with private health insurance. Respondents were an equal ratio of male to female with age groups ranging from 18 years to 65 years +.  Respondents were representative of the Australian population NSW (31%), VIC (25%), QLD (17%), WA (11%), SA (7%), TAS (6%), ACT (2%), and NT (1%).[1] [2] http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0

Author comparethemarket.com.au

Launched in September of 2012, Comparethemarket.com.au – operated by Compare the Market Pty Ltd (CTM) – has teamed up with a range of Australia’s insurance providers so you can compare some of the latest deals, in one place, side-by-side. The team behind comparethemarket.com.au have experience in insurance, comparison, customer service and digital. If this was a stuffy corporate monologue, we’d tell you that we’re a bunch of subject matter experts specialising in User Experience, Customer Insights & Online Strategies. But to be honest, it’s just as accurate (and a whole lot easier) to say that we’re a bunch of people who want to make your experience with online comparison better. We pride ourselves on the fact that we’re forward-thinking, that we share an entrepreneurial spirit, and the fact that we like to have a bit of a laugh too. We’re all a bit too addicted to chocolate, but no one’s perfect, really.

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