Will I have to pay the Medicare Levy Surcharge?
If you earn $90,000 or more per year as a single, there’s yet another incentive to obtain hospital cover sooner rather than later. Those earning more than this amount will incur a Medicare Levy Surcharge (MLS) if
they don’t have private hospital cover. This surcharge is designed to reduce the demand on public healthcare.
On the other hand, for families and couples, if your annual joint income is $180,000 or more, you’ll incur the MLS if you don’t have private hospital cover.
Regardless of whether you’re in need of individual, family or couples cover, it’s in your best interest to be aware of the MLS. By taking out private hospital cover, you can avoid the MLS altogether.
If you don’t have hospital cover or a private health insurance policy that includes eligible hospital policy, you’ll need to pay the MLS in addition to the Medicare Levy of 2 per cent that most taxpayers pay.
By taking out private health insurance, you may be eligible for a government rebate which is based on how much you earn. Income threshold entitlements can change from year-to-year so it’s worth heading to the Australian Taxation Office’s website for more details.