Who pays the Medicare levy Surcharge?
You generally must pay the surcharge if you are a higher income earner and do not have a private hospital insurance policy with the appropriate excess. The additional 1% levy is charged on the number of days in the tax year that you have NOT held a private hospital insurance policy with the appropriate excess. For example if you take a private hospital insurance policy on the 1st of August 2009, you will pay the levy for the 31 days that you did not have a private hospital insurance policy, the following 334 days of the tax year will be exempt from the levy. This exemption will continue whilst you hold a private hospital insurance policy with the appropriate excess. Exemptions apply however to “prescribed persons”. For more information contact the Australian Taxation Office, or consult a tax professional.
