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alicnkin(Initiate)Initiate
16 Feb 2025

Hi,


I and my wife are retirees. We pay 2% of our incomes (such as bank interests) as Medicare levy. We plan to visit our home country for 2 to 3 months and, to save money, to suspend our hospital cover with the medical insurer. My friends told us that we had to pay a medicare levy surcharge (MLS) for the hospital cover suspension; other friends said we don't have to pay the MLS.


We are confused. Do we have to pay the MLS (in addition to the 2% Medicare levy) for the hospital cover suspension whilst we are overseas?


Thank you

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Taxduck(Taxicorn)Taxicorn
16 Feb 2025

Medicare levy surcharge is not levied unless your income plus wife's yearly income is greater than $194,000. Link below details what is included in income for the Medicare levy surcharge.

Medicare levy surcharge income, thresholds and rates | Australian Taxation Office

Without knowing what your income is no one can say whether you have to pay the MLS.

Check link below if income is above threshold

Australians living overseas | Australian Taxation Office

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
16 Feb 2025

Medicare levy surcharge is not levied unless your income plus wife's yearly income is greater than $194,000. Link below details what is included in income for the Medicare levy surcharge.

Medicare levy surcharge income, thresholds and rates | Australian Taxation Office

Without knowing what your income is no one can say whether you have to pay the MLS.

Check link below if income is above threshold

Australians living overseas | Australian Taxation Office

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alicnkin(Initiate)Initiate
26 Feb 2025

Hi Taxduck,

I am confused: what is the difference between medicare levy and medicare levy surcharge.


My wife and my combined incomes are below $194,000. Does this mean that we have to pay the 2% of our incomes as medicare levy; and because we have a hospital cover, we don't have to pay the medicare levy surcharge even though we suspend our hospital cover (we still keep the hospital cover) when we are overseas?


tks

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