Health insurance explained

The Medicare Levy Surcharge (MLS) is a tax for higher‑income earners who don’t have an appropriate level of hospital insurance. It encourages use of private hospitals to ease pressure on public hospitals. You may pay an extra 1% - 1.5% tax for any period without suitable hospital cover if you’re a single earning $101,000+, or a couple or family with a combined income over $202,000+. Taking out an appropriate level of private hospital insurance can help you avoid the MLS.