Medicare Levy Surcharge calculator

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Need some advice about the Medicare Levy Surcharge?

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What does the Medicare Levy Surcharge calculator do?

Our calculator determines whether or not you’ll have to pay the Medicare Levy Surcharge (MLS), and how much this could cost you in tax. We calculate this based on the following criteria:

  • Your relationship status;
  • Number of dependents;
  • Annual income (individual/combined); and
  • Whether you hold private hospital cover.

What is MLS?

The MLS is a tax imposed on higher income earners who don’t have private hospital cover. It is designed to be an incentive for Australians to take out private hospital cover, if they earn:

  • $90,000+ as individuals; and
  • $180,000+ as families/couples.

The MLS is different from the Medicare levy, which is a 2% tax paid by most taxpayers to continue funding the public healthcare program. The MLS is payable in addition to the Medicare levy.

Do I need to pay the MLS?

If you earn less than is $90,000 for singles and $180,000 for families/couples, you will not pay a MLS. If you earn above this income threshold and do not hold a health policy with (with a policy excess payment of more than $500 for singles or $1,000 for couples) you will need to pay the MLS.

However, the MLS can be easily avoided by taking out hospital cover with a registered Australian health fund. It is worth remembering that taking out extras cover on its own won’t prevent you from paying the MLS.

Our best advice is to shop around for the best value private hospital insurance policy for your situation. We compare a range of Australia’s health insurance providers right here on our site, so it’s easy for you to see what’s on offer and which policy suits you best.