Do you earn more than $90,000 as a single, or $180,000 as a couple/family, and do not hold private hospital cover?
You may need to pay up to 1.5% of your taxable income towards the Medicare Levy Surcharge (MLS). This surcharge is designed to encourage higher-income earners to take out private hospital cover, rather than just relying on Medicare.
See if you’re impacted by using our Medicare Levy Surcharge calculator.
The only way to avoid paying the MLS is taking out private hospital cover. In addition, this policy must have an excess or co-payment of no more than $750 for singles, or $1,500 for couples/family.
|MEDICARE LEVY SURCHARGE – INCOME THRESHOLDS|
|Singles||Under $90,000||$90,001 – $105,000||$105,001 – $140,000||$140,001+|
|Families ^||Under $180,000||$180,001 – $210,000||$210,001 – $280,000||$280,001+|
|Retrieved from Privatehealth.gov.au | Information current as of 03/04/2017|
^ For families with children, thresholds increase by $1,500 for each child after the first. Families include couples, de facto couples, and single parents.
Many Aussies aren’t convinced they need private hospital cover – and some of them will instead opt to pay the MLS. If you’re undecided, you need to ask yourself some questions.
If you answered ‘yes’ to any of the above, then hospital cover could be a smart purchase for you. It’s a decision you’ll ultimately need to make on your own, but we’d be happy to help you decide. Whether you prefer to compare different policies online or give our experts a call to discuss your needs in detail, we’ve got your back.