Medicare Levy Surcharge

What is the Medicare Levy Surcharge?

The Medicare Levy Surcharge was introduced on the 1^st of July 1997. The Medicare Levy Surcharge is an additional 1% tax on top of the normal 1.5% Medicare Levy for high Income earners.

Who has to pay the Medicare Levy Surcharge?

You will have to pay the Medicare Levy Surcharge if you and all your dependents do not have Private Hospital cover and:

• You are a single person without a dependent child or children with a taxable income greater than $50,000; or
• You are a member of a family and the combined taxable income of you and your spouse is greater than $100,000.

The family income threshold increases by $1500 for each dependent child after the first.

How to calculate the Medicare Levy Surcharge.

Simply multiply your taxable income by 1%.

For example:

A family on a combined income of $110,000 per annum, will pay an additional levy of $1,100.

A single earning an income of $65,000 per annum, will pay an   additional levy of $650.

How can I avoid the Medicare Levy Surcharge?

By simply taking out an eligible Private Hospital cover for the whole financial year. For a Hospital coverage to be eligible, your excess must not be greater than $500 per year for a single, or $1000 per year for a couple/family.

Private Hospital cover can save a single, couple or family hundreds of dollars each year. It is a cheaper alternative to the levy and you have the added benefit of Private Hospital Cover.

Useful Link

For more information on the Medicare Levy Surcharge check out the below website.

Department of Health and Ageing - Medicare Levy Surcharge: Website