Medicare Levy Surcharge Calculator

If your annual income is over $97,000 as a single (or $194,000 as a single parent/couple/family) and you or any of your dependants don’t have an appropriate level of hospital cover, you may need to pay the Medicare Levy Surcharge. There is a way that you could save money on this surcharge, and that’s by taking out hospital cover for you and all your dependants for the full financial year. Use our Medicare Levy Surcharge Calculator to find out more.

How much extra tax could you pay without hospital cover?

Cover type

State

(Annual income)

Nice one! Looks like you might not have to pay the Medicare Levy Surcharge.

This is a guide only. It assumes you have no MLS dependants. You should speak to a financial advisor who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

Why not invest that money in your health

Medibank Basic Plus Healthy Start

from

/ year

This hospital cover includes a range of common services and procedures, such as:

Accident Cover Boost⁺
Unlimited Emergency Ambulance^
Joint reconstructions
Dental surgery
And more...

Medibank Bronze Plus Value

from

/ year

Wallet-friendly hospital cover that can help you feel protected and support your active lifestyle.

Gastrointestinal endoscopy
Chemotherapy, radiotherapy and immunotherapy for cancer
Gynaecology
Bone, joint and muscle
And more...

Waiting period and annual limits may apply.

+ For Accidents that occur in Australia after your cover starts. Must seek medical treatment within 7 days, and receive hospital treatment within 12 months of the Accident occurring. Excludes Private Emergency Department Benefit, hospital bonus, claims covered by third parties and our Private Room Promise. Out-of-pocket costs may apply.

^ Waiting period applies. For ambulance attendance or transportation to a hospital where immediate medical attention is required and your condition is such that you couldn't be transported any other way. TAS and QLD have State schemes that provide ambulance services for residents of those States.

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What is the Medicare Levy?

Currently, everyone chips into the Australian public healthcare system, Medicare. Most taxpayers contribute 2% of their taxable income, unless they earn under a certain amount, in which case they don’t need to pay anything at all. This is referred to as the Medicare Levy.

In addition to the Medicare Levy, some taxpayers also need to pay a Medicare Levy Surcharge (MLS), a government scheme designed to help take the burden off the public system.

When does the Medicare Levy Surcharge apply?

The Medicare Levy Surcharge applies if your annual income^#is over $97,000 as a single (or $194,000 as a single parent/couple/family) and you or any of your dependants^#don't hold an appropriate level of hospital cover. It starts at 1% and increases (up to 1.5%) depending on your annual income^#. The family income threshold for single parents, couples and families is increased by $1,500 for each MLS dependant child after the first child.

However, if you and all your dependants^#take out Medibank hospital cover and hold it for the full tax year, you may not have to pay the Medicare Levy Surcharge. Plus you can enjoy knowing that your health is in good hands.

What about Lifetime Health Cover Loading (LHC)?

Once you turn 30, a 2% loading is added to your hospital cover premium for every year you’re without hospital cover. This is called the Lifetime Health Cover (LHC) loading.

You can avoid this loading by taking out and maintaining hospital cover before July 1st following your 31st birthday (this is known as your base day).

For example, if you take out hospital cover at 35, your LHC loading will be 10% of the base premium.