What is it?

The Medicare Levy Surcharge (MLS) is an additional tax charged by the Australian Government to anyone with a taxable income over $90,000 and who doesn't have private hospital insurance. The MLS is charged as a percentage of your taxable income, and starts at 1%.

If you earn...
  • $90,001
    taxed at 1%
    you'll pay an extra $900
  • $105,000
    taxed at 1.25%
    you'll pay an extra $1,312
  • $140,000
    taxed at 1.5%
    you'll pay an extra $2,100
$90,001
taxed at 1%
you'll pay an extra $900
$105,000
taxed at 1.25%
you'll pay an extra $1,312
$140,000
taxed at 1.5%
you'll pay an extra $2,100

Source: Australian Tax Office. These thresholds apply to for the 2014/2015 financial year and increase annually based on projected growth in Average Weekly Ordinary Time Earnings (AWOTE). For families, and single parent families the threshold increases by $1,500 for each dependent child after the first. There are specific rules for calculating income for Medicare Levy Surcharge purposes. For more information visit The Australian Tax Office.

How could I avoid paying the MLS?

The MLS applies for the period of the tax year when private cover wasn't held — so to avoid it completely, you'll need to take out hospital insurance before July 1, and maintain it for the full financial year.

How could having private hospital cover work out cheaper?

HBF has hospital insurance options that are cheaper than the surcharge, which means you could actually save money by purchasing hospital cover.

Based on a single HBF Young Saver Hospital premium, after deducting a 26.791% Australian Government Rebate on private health insurance.

No private
hospital cover

Single earning $100k pays $1000 per year


Has HBF
hospital cover

Single earning $100k pays $749 per year

Estimated saving of $251 a year!

How much could I save?

See how much you could save with HBF. Calculate your estimated surcharge for the 2015/16 financial year with our handy calculator.

Change the details below to reflect your situation I'm with and we lodge our tax I have We have child kids and my taxable income is and my taxable income is and our combined income is $
$56,000 $108,000 $160,000 $212,000 $264,000
Estimated Surcharge
$1,000
Your estimated surcharge is
$1,000

Calculate your rebate
30%

Age of the oldest adult on the policy

“It's nice to know I can get hospital cover for less than it costs to pay the surcharge.”

You could save

$
Loading...

by taking out
Young Singles Saver Hospital

More information Get a quote
Change the details below to reflect your situation I'm with and we lodge our tax I have We have child kids and my taxable income is and my taxable income is and our combined income is $
$56,000 $108,000 $160,000 $212,000 $264,000
Estimated Surcharge
$1,000

What type of HBF cover do you currently have?

Great news!

You already have hospital cover, so you don’t have to pay the surcharge.


Estimated tax you’re saving
$1,000
Is your current cover right for you?

“ Last year I got a pay rise and it was a bit of a shock to find out I'd have to pay nearly $1,000 extra tax. It's nice to know I can get hospital cover for less than it costs to pay the surcharge. ”

Your estimated surcharge is
$1,000

Calculate your rebate
30%

Age of the oldest adult on the policy

“It's nice to know I can get hospital cover for less than it costs to pay the surcharge.”

You could save

$
Loading...

by taking out
Young Singles Saver Hospital

More information Let us call you

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