Medicare Levy Surcharge

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 $90,000 a year and couples, families and single parents earning more than $180,000 a year may have to pay the Medicare Levy Surcharge. The surcharge rate increases with your income, as the table below shows.
*Please note: If you have two or more children, the family income threshold is increased by $1,500 for every dependent child after the first child.
You should be aware that the definition of "income" for Medicare Levy Surcharge purposes is different to that used to calculate your income tax. The Australian Tax Office (ATO) has a list of the key differences.

How do I avoid paying the Medicare Levy Surcharge (MLS)?

If your income is less than $90,000 (singles) or $180,000 (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.

Basic Hospital Cover Options

Qantas Health Insurance’s Basic Hospital Cover provides a low-cost way to get private hospital cover while avoiding the MLS. For a little extra per week, Bronze Hospital Cover offers cover on a wider range of treatments.
Earn Qantas Points
Hospital cover with Qantas Health Insurance also rewards you 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.


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.
1 Provider must have professional qualifications recognised by nib.
2 Residents of Queensland and Tasmania are covered by a state based ambulance scheme.
3 The Qantas Wellbeing App is offered by Qantas and you must be a member of the Qantas Frequent Flyer (QFF) program and be 13 years of age or over to use the App. Each Qantas Health Insurance policy has a maximum number of points that can be earned each year through the App. 20,000 is the maximum number of Qantas Points that can be earned each year through the App by each QFF member who is covered under Gold Hospital Cover. To earn 20,000 points, you must participate in the highest daily and weekly challenges and win every weekly group challenge.