The Medicare Levy Surcharge (MLS) is payable where your income is over a threshold amount and you don’t have appropriate private health insurance. The threshold amount for a single taxpayer is currently $90,000 and for families with up to one dependent child is $180,000. If your income for surcharge purposes exceeds the relevant amount and you do not have private hospital cover, you will pay the surcharge.
Please note that the surcharge is in addition to the Medicare Levy and the MLS of 1%, 1.25% or 1.5% is levied on your taxable income, reportable fringe benefits, reportable super contributions and total net investment losses.
Therefore, to avoid the surcharge, we recommend for you to consider taking out an appropriate private health insurance cover.
