Do we both have to pay Medicare Levy Surcharge if one spouse does not have private hospital cover?

 Author: YellowPotato(Taxicorn)Taxicorn

8 Apr 2026

Best to ask a tax agent or ATO's technical advice

We have no dependants

• Spouse is a dependant, so both of you need hospital cover
• https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-exemption/dependants-for-medicare-levy-exemption

Do we both have to pay medicare levy surcharge despite one of us having private hospital cover?

• Maybe, not enough information
• During the year becoming a family or stop being a family, your own income is compared to the single and family threshold for the respective time period.
  • you wouldn't pay MLS on the period you were single because of the private hospital cover
  • Maybe you pay MLS for the other period because only you have hospital cover and your spouse maybe pay MLS
• Whilst as a couple, combined income is compared to the couple threshold - so yes you both need to pay since both of you don't have hospital cover

ATO guide for figuring out days you don't pay MLS

• https://www.ato.gov.au/individuals-and-families/your-tax-return/instructions-to-complete-your-tax-return/mytax-instructions/2025/medicare-and-private-health-insurance/medicare-levy-surcharge/mytax-2025-number-of-days-you-dont-have-to-pay-the-mls

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