The Medicare Levy Surcharge (MLS) is an extra tax of 1% of taxable income payable by higher income families, couples and singles who do not have an eligible hospital insurance policy. The Medicare Levy Surcharge is in addition to the normal Medicare Levy of 1.5% of taxable income.
Eligible Hospital Cover
To avoid the Medicare Levy Surcharge, higher income earners need to take out eligible private health insurance (eligible hospital cover) with a low excess (also known as a low front end deductible). To qualify, your hospital cover excess must be equal to or less than $500 per annum for single policies or $1,000 per annum for families and couples cover. All hospital covers available through Health Link will enable you to avoid the Medicare Levy Surcharge for the period covered.
Who pays the Medicare Levy Surcharge?
The Medicare Levy Surcharge is payable by higher income earners who do not have an eligible hospital cover.
Medicare Levy Surcharge Income Thresholds can be viewed here.
When you may not have to pay the Medicare Levy Surcharge
If you had an eligible hospital cover for part of the year, you will generally be required to pay the Medicare Levy Surcharge only for those days when you or any of your dependants did not have an eligible hospital cover.
Save with Health Insurance
You can avoid paying the Medicare Levy Surcharge by taking out an eligible hospital cover.
Some policies may cost you less than your MLS liability so joining health insurance can actually save you money!
For a free, no obligation review and personal health cover recommendation, call Health Link on Freecall 1800 808 026 or request a free review online.
More information about the Medicare Levy Surcharge
For general information about the Medicare Levy Surcharge (MLS) or any other health insurance related matter, contact Health Link on Freecall 1800 808 026. For more detailed information about the Medicare Levy Surcharge, contact the Australian Taxation Office by: