Earn over $97k? 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 $97,000 (or $194,000 for families and couples) at 1 July 2024, our private hospital cover could reduce your income taxes by avoiding the MLS.


Private hospital coverageNoYes

Health Partners Basic Hospital Plus

MLS at tax time$10002$0
Health Insurance Premiums$0$1065.522
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.

  1. Income and premiums displayed for the entire tax year. 
  2. Quoted on Basic Hospital Plus cover $750 excess for a single living in SA earning $97,001 - $113,000 aged under 65 (includes the Tier 1 Govt. Rebate of 16.405%) and includes 3% direct debit discount.
  3. Assumes taxpayer has no dependants
  4. 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.
  5. 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

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 TierTier 1Tier 2Tier 3

$93,000 or less

$93,001 - $108,000

$108,001 - $144,000



$186,000 or less

$186,001 - $216,000

$216,001 - $288,000




The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

Source: ATO Income Threshold and Rates 2023-24

2024-25 MLS Income Tiers

The Australian Tax Office has announced changes to the 2024-25 income thresholds which are used to calculate the Medicare Levy Surcharge, effective 1 July 2024.

Base TierTier 1Tier 2Tier 3

$97,000 or less

$97,001 - $113,000

$113,001 - $151,000

$151,001 or more


$194,000 or less

$194,001 - $226,000

$226,001 - $302,000

$302,001 or more

Source: ATO Income Threshold and Rates 2024-25

Refer to income and dependent definitions for Medicare Levy Surcharge purposes.

Why get hospital cover when there's a public system?

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