How can I avoid paying the Medicare Levy Surcharge?
High income earners without an appropriate level of private hospital cover are required to pay an additional Medicare Levy Surcharge of 1% if they earn income above the Medicare levy surcharge threshold. For the 2009/2010 financial year, the threshold levels are $73,000 for single members and $146,000 for all other membership categories including couples, single parents and families. The threshold of $146,000 is increased by $1,500 for each dependant child after the first. People earning above the threshold amount can avoid paying the Medicare Levy Surcharge by taking out an appropriate level of hospital cover that covers them and all their dependants for the full financial year. For information on what income is used to determine your ‘income for (Medicare levy) surcharge purposes’ see TaxPack 2010 or visit ato.gov.au/individuals and search under ‘income tests’. Permanent ADF personnel should be aware that they are not exempt from the Medicare Levy Surcharge unless an appropriate hosp
