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Johnticketheap(Newbie)Newbie
12 Apr 2024

I am single and have two children under 18 living with me half the time. So I would be considered a family for medicare levy surcharge purposes.


Three questions-

1. Am I correct in saying that if I don't have private health insurance I will be treated as a family and an income threshold of $186K income will apply when calculating the Medicare Levy Surcharge?


2. However if I take out single private health insurance (children not covered) then I will be treated as single and the $93K income threshold will apply even though I have dependants?


3. Does it make a difference whether the children are covered under the other parent's private health insurance policy or not covered at all?

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Taxduck(Taxicorn)Taxicorn
13 Apr 2024

With 2 dependent children under 21 ( https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-exemption/dependants-for-medicare-levy-exemption ) then the MLS is levied above $187,500. ($186,000 + $1500 for each additional child after the 1st)

Whether you have PHI is not relevant. You may be single for the PHI policy but for the MLS the income threshold remains unchanged as you have dependents. It is your income that determines whether you are subject to the MLS. See link.

https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/paying-the-medicare-levy-surcharge

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
13 Apr 2024

With 2 dependent children under 21 ( https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-exemption/dependants-for-medicare-levy-exemption ) then the MLS is levied above $187,500. ($186,000 + $1500 for each additional child after the 1st)

Whether you have PHI is not relevant. You may be single for the PHI policy but for the MLS the income threshold remains unchanged as you have dependents. It is your income that determines whether you are subject to the MLS. See link.

https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/paying-the-medicare-levy-surcharge

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Thresholds for Medicare Levy Surcharge | ATO Community