2011 - 2012 Financial Year
The Medicare Levy Surcharge is payable by higher income earners who do not have an eligible hospital cover.
For the 2011-12 year:
- Single people with a taxable income (including reportable fringe benefits) of greater than $80,000 per year will pay an additional tax of 1% of their taxable income (with an income of $85,000, you will pay an extra $850 tax).
- Families/couples with a taxable income (including reportable fringe benefits) of greater than $160,000 per year will pay an additional tax of 1% of their taxable income (with an income of $170,000, you will pay an extra $1700 tax). Note: The family threshold increases by $1500 pa for each child after the first.
The thresholds for the 2010-11 year were $77,000 for singles and $154,000 for families (increasing by $1500 pa for each child after the first).
2012 - 2013 Financial Year
The Medicare Levy Surcharge for the 2012-13 year will be income based. That is, the more a person or family earns, the higher their Medicare Levy Surcharge will be (if they do not have eligible hospital cover).
The various income thresholds and Medicare Levy Surcharges payable will be as follows:
Unchanged - No MLS payable
- Singles: earning $84,000 or less
- Families: earning $168,000 or less
Tier 1 - 1% (of taxable income) MLS payable
- Singles: earning $84,001 - $97,000
- Families: earning $168,001 - $194,000
Tier 2 - 1.25% (of taxable income) MLS payable
- Singles: earning $97,001 - $130,000
- Families: earning $194,001 - $260,000
Tier 3 - 1.5% (of taxable income) MLS payable
- Singles: earning $130,001 or more
- Families: earning $260,001 or more