Earn over $93k? Can you benefit at tax time?
Learn how to avoid the Medicare Levy Surcharge (MLS) with great value Hospital Cover
Avoid the MLS
Tax time can be confusing enough without having to worry about the Medicare Levy Surcharge (MLS). That’s where Health Partners comes in.
If you’re single and earn over $93,000 (or $186,000 for families and couples) at 1 July 2023, our private hospital cover could reduce your income taxes by avoiding the MLS.
John | Jane | |
| Income | $100,0001 | $100,0001 |
| Private hospital coverage | No | Yes
Health Partners Basic Hospital Plus |
| MLS at tax time | $10002 | $0 |
| Health Insurance Premiums | $0 | $1027.991 |
| What this could mean... | John is reliant on the public system. He could experience long wait times and high out-of-pocket expenses if he requires private elective surgery.
With an average trip costing over $1,0004, John could be up for a hefty emergency ambulance bill. | Jane avoided the MLS at tax time by holding hospital cover throughout the tax year. She can choose her procedure schedule, specialist and stay in her own room3. Jane is covered for accidents, even for categories listed as exclusions.
Jane's cover offers unlimited emergency ambulance. |
- Income and premiums displayed for the entire tax year. Quoted on Basic Hospital Plus cover $750 excess for a single living in SA earning $93,001 - $108,000 aged under 65 (includes the Tier 1 Govt. Rebate of 16.405%) and includes 3% direct debit discount.
- Assumes taxpayer has no dependants
- If the procedure’s clinical category is included on the Basic Hospital Plus cover (includes Joint reconstructions, Tonsils, adenoids and grommets and Dental surgery). Private room is subject to availability.
- SA Ambulance Service, 2023
Here's how it works
- When you earn more than the above thresholds, you have to pay the MLS when you lodge your tax return.
- The Australian Government introduced the MLS to reduce demand on the public health system by encouraging those on higher incomes to take out private health insurance. The MLS is additional to the standard Medicare Levy, which is unavoidable to most Australian taxpayers.
- It’s worth mentioning you’re still eligible for Medicare if you hold private hospital cover.
2023/24 MLS Income Tiers
The Australian Tax Office has announced changes to the 2023-24 income thresholds which are used to calculate the Medicare Levy Surcharge, effective 1 July 2023.
To make things simple, we’ve broken it down for you. The surcharge starts at 1% of your income for MLS purposes, rising as your income increases. So, take a look at the table below to see if health cover is right for you.
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $93,000 or less | $93,001 - $108,000 | $108,001 - $144,000 | $144,001+ |
| Families | $186,000 or less | $186,001 - $216,000 | $216,001 - $288,000 | $288,001+ |
| Surcharge | 0% | 1% | 1.25% | 1.5% |
Source: www.privatehealth.gov.au
* 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.
2014-15 to 2022-23 MLS Income Tiers
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | $90,000 or less | $90,001 - $105,000 | $105,001 - $140,000 | $140,001+ |
| Families | $180,000 or less | $180,001 - $210,000 | $210,001 - $280,000 | $280,001+ |
Why get hospital cover when there's a public system?
-
Jump the queue
Read moreJump the queue
With Hospital Cover you can avoid long public hospital waits, which can take months or even years, by choosing your own doctor and timing for treatment.
-
Choose your own specialist
Read moreChoose your own specialist
You get to choose your own specialist, as well as where and when you’ll be treated.
-
Have the same specialist care from start to finish
Read moreHave the same specialist care from start to finish
Continuity of care is something that can’t be undervalued.
-
Recover in the privacy of your own room Read more Recover in the privacy of your own room
Read moreRecover in the privacy of your own room Read more Recover in the privacy of your own room
All levels of hospital policies cover you for a private room, where one is available, giving you comfort and privacy during your recovery.
Choose great value private health cover to suit your needs and budget
Cover prices for a single, starting from:
Basic Hospital Plus
$19
.77*
Per week
Affordable cover for accidents and basic hospital services
-
Choice of excess
-
Accident cover
-
Unlimited Emergency Ambulance
Bronze Hospital Plus
$23
.06*
Per week
Great start cover for a range of common procedures
-
Choice of excess
-
No excess for accidents
-
Unlimited Emergency Ambulance
Silver Hospital Plus Lite
$29
.04*
Per week
Even more protection with some exclusions to keep costs down
-
Choice of excess
-
No excess for dependants
-
Unlimited Emergency Ambulance
Silver Hospital Plus Advtange
$39
.52*
Per week
High level of cover for a wide range of procedures
-
Choice of excess
-
No excess for dependants
-
Unlimited Emergency Ambulance
Gold Hospital Advantage
$58
.66*
Per week
Top cover that includes pregnancy and birth related procedures
-
No excess for dependants
-
Unlimited Emergency Ambulance
-
No Clinical Category Exclusions
Switching from another health fund? No worries!
-
We do all the paperwork & contact your insurer
-
Waiting periods already served switch with you
-
30 day cooling off period to make sure you’re happy
-
Your waiting periods switch with you
You won’t need to re-serve equivalent waits
-
30 day cooling off period
To make sure you’re happy
-
Not-for-profit, we’re in it for you
Caring for members’ health for over 80 years
Your waiting periods switch with you
You won’t need to re-serve equivalent waits
30 day cooling off period
To make sure you’re happy
Not-for-profit, we’re in it for you
Caring for members’ health for over 80 years
Busy? Get a call back
Thank you for your submission
© Copyright Health Partners. 2023 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.
© Copyright Health Partners. 2023 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.