Medicare Levy Surcharge Calculator

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A guide to Medicare Levy Surcharge Calculators

Updated 21 March, 2024
Written by Joshua Malin
Reviewed by Steven Spicer

What is the Medicare Levy Surcharge?

The MLS is an extra tax charged by the Australian Government via your annual income tax return. The purpose of the surcharge is to take pressure off the public healthcare system by encouraging high-income earners to take out hospital cover.

The Medicare Levy Surcharge (MLS) is owed on top of the regular Medicare levy, but only applies to high-income earners who don’t have a private hospital cover policy. If you meet the following Medicare Levy Surcharge thresholds, without sufficient private health cover, you will likely need to pay the MLS:

  • Singles who earn more than $93,000
  • Couples with a combined income of more than $186,000 (including families and single parents).

If the above applies to you, you’ll owe the MLS for every day you didn’t hold appropriate private patient hospital cover in the full financial year. So, if you get insured from the full month of December, you may still owe MLS from July to November.

Private hospital cover with an excess of no more than $750 for singles or $1,500 for couples and families can help you avoid the MLS.

Taking out an extras cover policy as a standalone product will not help you avoid paying the MLS.

Frequently asked questions about the MLS

What is the Medicare levy and how is it different from the Medicare Levy Surcharge?

Do I have to pay the Medicare Levy Surcharge?

Do I qualify for Medicare Levy Surcharge exemptions?

Is it worth taking out private health insurance to avoid the MLS?

Meet our health insurance expert, Steven Spicer

Steven Spicer
Executive General Manager – Health, Life & Energy

As the Executive General Manager of Health, Life and Energy, Steven Spicer is a strong believer in the benefits of private cover and knows just how valuable the peace of mind that comes with cover can be. He is passionate about demystifying the health insurance industry and advocates for the benefits of comparison when it comes to saving money on your premiums.

1 Australian Taxation Office: Medicare Levy Surcharge, Last updated February 2024.
2 Australian Institute of Health and Welfare. Elective surgery waiting times 2022-23. Accessed February 2024.