What are the Medicare Levy and Medicare Levy Surcharge?
To help fund Medicare, Australian resident taxpayers are subject to a tax known as the Medicare Levy. In most cases, the Medicare Levy is calculated at 1.5% of your taxable income. However, this rate may vary depending on your personal circumstances. If you are an individual or family on a higher income and do not have private patient hospital cover for yourself and all of your dependants (including your spouse) during any period of the income year, you may have to pay the Medicare Levy Surcharge (MLS) for that period you were without cover. The MLS is calculated at 1% of your taxable income and is in addition to the 1.5% Medicare Levy.
