What is the Medicare Levy Surcharge?

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 you need to pay the MLS at tax time.

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.

Can you avoid it?

That's where Health Partners can help.

If you’re single and earn over $90,000 (or $180,000 for families and couples), taking out hospital cover could reduce your income taxes by avoiding the MLS. For example, if you have our Basic Hospital Plus cover, you will avoid the need to pay the MLS. Plus depending on how much you earn, hospital cover could be cheaper than the MLS. Let us show you.

	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	$986.251
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 saved $13.75 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 dependants

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

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

The reasons for choosing Hospital Cover can be varied, however there are a few common trends that are motivating people to take out cover, even when they have access to a good public health system. Here we outline some of the most common reasons.

Choose great value Hospital cover to suit your needs and budget. Compare here