What is the Medicare Levy Surcharge?

How much is the Medicare levy surcharge?

It can start at about $930 per year for singles earning just over $93,000.

It can increase to over $2,160 per year for singles earning over $144,000.

Use the calculator below to estimate how much you might pay.

To calculate your MLS, the Australian Tax Office (ATO) uses a special definition of income (called ‘income for MLS purposes’). Your ‘income for MLS purposes’ is different from your regular taxable income.

How to avoid the Medicare Levy Surcharge

You can avoid the MLS by getting an appropriate level of hospital cover.

All of HBF's hospital cover options qualify as an appropriate level of hospital cover.

If you only buy extras cover, you’ll still have to pay the MLS.

When you do get hospital cover, you’ll still pay the MLS for the part of the year you weren’t covered. You’ll only avoid the MLS completely if you’ve held hospital cover for the full financial year.

There are also special cases where you’d be exempt from paying the MLS, which you can read about on the ATO’s website.

Medicare Levy Surcharge thresholds*

Learn more about how the MLS is calculated on the ATO website.

* Single parents and couples (including de facto couples) are subject to family tiers. If you have more than one child, your family income threshold increases by $1,500 for each child after your first.

The income thresholds are indexed and will remain the same to 30 June 2024.