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.

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