Earn over $90k?

Can you benefit at tax time?

Learn how to avoid the Medicare Levy Surcharge (MLS) with great value Hospital Cover

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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 $90,000 (or $180,000 for families and couples), 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$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.

1. Income and premiums displayed for the entire tax year. Quoted Basic Hospital Plus premiums are for a single living in SA earning $90,001-105,000 aged under 65 (include the Tier 1 Govt. Rebate, or 16.405%).

2. Assumes taxpayer has no dependents

3. 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.

4. SA Ambulance Service, 2021

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.

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.

SinglesUnder $90,000$90,001 – $105,000$105,001 – $140,000$140,001+
FamiliesUnder $180,000$180,001 – $210,000$210,001 – $280,000$280,001+



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.

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

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Choose great value Hospital cover to suit your needs and budget

Choose from five levels of Hospital cover and have confidence knowing exactly what you’re covered for if you need to go to hospital.

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Cover prices for a single, starting from:

*Premiums displayed are for applicants in SA entitled to base tier Australian Government Rebate, nil Lifetime Health Cover loading and $750 excess (relating to Hospital Cover only), and paid via direct debit.

Limits, waiting periods, restrictions and exclusions may apply. Benefits vary according to cover level- those noted throughout this page provide a snapshot of some that may apply when using a Health Partners Participating Provider or Hospital, and may relate to specific item numbers or incorporate further terms and conditions. 20% Pharmacy discount applies to most non-prescription items at Participating Pharmacies, to eligible Health Partners members with Extras cover. Conditions and exclusions apply, refer www.healthpartners.com.au/generous-extras/pharmacy for full details and to find your nearest Provider.

Refer to individual cover details and the Health Partners Member Guide for more information.

˜Members stay with our Hospital Cover a long time compared with other open health funds, Private Health Insurance Ombudsman, State of Health Funds report 2020 and 2021.

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