The Medicare Levy Surcharge is an additional 1% surcharge of taxable income imposed on higher income earners who are eligible for Medicare but do not have private patient Hospital Cover with a health fund.
The taxable income thresholds for high income earners as of are detailed below.
| Singles |
$70,000* |
| Couples/families (0-1 children) |
$140,000 |
*This amount applies in relation to the 2008-09 financial year, and will be indexed each subsequent year.
Please note: Persons who ceased their private hospital cover after 1 July 2008, or have yet to take out private hospital cover, can avoid incurring the additional 1% Medicare Levy surcharge for the 2008-09 financial year if they take out hospital cover before 1 January 2009. For this to apply, continuous level of cover must be held from 1 January 2009 to 30 June 2009.
An extra $1,500 taxable income per additional child applies to families.
To avoid the 1% Medicare Levy Surcharge simply choose any CBHS Hospital Cover.
For more information on the Medicare Levy Surcharge, please contact the Australian Taxation Office on 13 28 61.
Use this simple calculator to find out what Medicare Levy Surcharge you would be liable to pay.