The Medicare Levy Surcharge is an additional surcharge on an individual’s taxable income, imposed on higher income earners who are eligible for Medicare but do not have an appropriate level of hospital cover with a private health insurer, the table below outlines which individuals are effected by the Medicare Levy Surcharge.
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Unchanged/
Base Tier
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Tier 1
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Tier 2
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Tier 3
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Singles*
Families*
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$84,000 or less
$168,000 or less
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$84,001–97,000
$168,001-194,000
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$97,001-130,000
$194,001-260,000
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$130,001 or more
$260,001 or more
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Medicare Levy Surcharge
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|
All ages
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0.0%
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1.0%
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1.25%
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1.5%
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For families with children, the thresholds are increased by $1,500 for each child after the first child.
To avoid the Medicare Levy Surcharge, simply choose any CBHS hospital cover.
For more information on the Medicare Levy Surcharge, 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.
* This amount applies in relation to the 2011-12 financial year, and will be indexed each subsequent year.