Medicare Levy Surcharge
Medicare Levy Surcharge – to pay or not to pay?
The Medicare Levy Surcharge (MLS) is an additional tax on your income that you may need to pay if your income is above a certain level and you don’t have an appropriate level of hospital cover as part of a private health insurance policy. Its aim is to encourage higher income earners to use the private hospital system to reduce demand on the public system.
How much would I need to pay?
Singles earning more than $97,000 a year and couples, families and single parents earning more than $194,000 a year may have to pay the Medicare Levy Surcharge. The surcharge rate increases with your income, as the table below shows.
Source: www.ato.gov.au. Accurate as at 1 July 2024
*Single parents and couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
How do I avoid paying the Medicare Levy Surcharge (MLS)?
If your income is less than $97,000 (singles) or $194,000 (couples, families and single parents), then you won’t need to pay the MLS at all.
If your income is above these amounts, you can avoid paying the MLS by taking out a private health insurance policy that includes hospital cover. The excess on your hospital cover needs to be $750 or less for singles, or $1,500 or less for couples, families and single parents.
Qantas Health Insurance
Qantas Health Insurance offers a range of Hospital cover options to choose from, plus you’ll also be rewarded with Qantas Points you could put towards your next holiday. Earn points for joining, for paying your premium, and even for fitness activities like walking, cycling and swimming through the Qantas Wellbeing App.
The content in this article is general only and is not intended to provide, and should not be relied on for, tax or accounting advice. Before making a decision, you should obtain your own current tax and accounting advice relevant to your particular circumstances.
Important Information
Qantas Health Insurance is issued by nib health funds limited ABN 83 000 124 381 (nib) a registered private health insurer, and is arranged by Qantas Airways Limited ABN 16 009 661 901 (Qantas), for which Qantas receives commission.