We’ve been listening to your questions about the Medicare Levy Surcharge and we’re here to break it down for you!
Let’s start with what the Medicare Levy Surcharge is.
The Medicare levy surcharge (MLS) is an extra charge on top of the Medicare levy. It’s designed to encourage high income earners to take out private hospital insurance and reduce the pressure on our public health system.
Who needs to pay the MLS?
You might have to pay the MLS if:
· You earn above the MLS threshold, and
· You, your spouse or your dependant children don’t have an appropriate level of private patient hospital cover for the full income year.
The amount of MLS you’ll pay depends on your income and your circumstances. We’ll calculate the rate you need to pay when you lodge your tax return.
You can avoid paying the MLS by taking out an appropriate level of private patient hospital cover. But remember it must cover you, your spouse and all your dependants!
We understand you may have situation specific questions, but we hope this answers most of them 😊
Check out our article to understand the difference between the Medicare Levy and the Medicare Levy Surcharge!
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