What is the Medicare Levy Surcharge (MLS)?
• The Medicare Levy Surcharge is a tax to encourage high income earners to join private hospital cover. In addition to the 1.5% Medicare levy, you will have to pay the Medicare Levy Surcharge if: • You are single and have a taxable income of more than $70,000 per year • You and your partner have a combined taxable income of more than $140,000 per year (add $1,500 per child after the first child). The surcharge is calculated at 1% of your taxable income. If you suspend your cover to travel, or do not register a dependant or newborn, you may be subject to the Medicare Levy Surcharge for the period for which you were not covered. For more information on the Medicare Levy Surcharge visit the Australian Taxation Office.
