Medicare Levy Surcharge (MLS)

The Medicare Levy is a 2% tax on your income that most of us pay each year. On top of this, the Government imposes a Medicare Levy Surcharge of at least 1% (and as much as 1.5%) if you make more than $140,000 as a single (or $280,000 in a family).

This encourages high earning Australians to take out private hospital cover so that there's less demand on the public system.

The Medicare Levy Surcharge won’t affect you if you don't earn more than $90,000 annually as a single, or $180,000 as a family. However, if you earn more than this, then there are some very good reasons why taking out health insurance is a great idea.

For example, if you make $97,000 as a single person:

  • Your MLS would be an extra $970 tax.
  • Your annual premium for health.com.au’s Base Hospital insurance is $1,015 (based on NSW pricing and tier 1 rebate)
  • By signing up with health.com.au, you don’t have to pay the $970 tax.
  • This means that you're only paying an additional $45 more per year for Private Health Insurance!
  • As an alternative, you could have Base65 that also includes $1850 in potential extras benefits for $1,400 per year, or $430 more than paying the MLS and getting nothing.

*please note these are just examples and not actual figures.

You can find further details regarding MLS on the ATO website.