ATO Community

Private health insurance

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Newbie

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Hi, I’m a bit confused!
My wife has private health insurance and I don’t. We will be over the 180000 threshold this year at tax time.question is:
- is it worth me getting insurance now and does that stop her from having to pay the MLS or will she also have to pay that as we are a couple?
-I assume I will have to pay the MLS for the year apart from thise days I have insurance?
Cheers
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Community Manager

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Hi @Gillon

 

Welcome to our community.

 

@macfanboy is correct. If your wife has an appropriate level of private patient hospital cover for all of the financial year and you only have it for some of the year, you will both have to pay Medicare levy surcharge (MLS) for the part of the year where only your wife is covered. This of course assumes that your combined income for MLS purposes is above the threshold.

 

The M2 Medicare levy surcharge (MLS) section of the tax return instructions explains this quite well.

 

Check out the 'Part-year liability' example about Jill and Kevin near the bottom of the page.

 

If you and all your dependants, including your spouse are covered by an appropriate level of private patient hospital cover for the whole of 2019-20, you and your wife will be MLS exempt for all of that year.

 

Have a look at the private health insurance rebate page on our website for more information.

 

Hope this helps.

 

Thanks,

 

KylieS

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Taxicorn

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If you are over the threshold then both of you have to pay the Medicare levy surcharge for the number of days in the financial year that you both didn't have it.

 

If you get it now then you will both be exempt for the 2020 financial year.

 

Highlighted

Best answer

Community Manager

Replies 0

Hi @Gillon

 

Welcome to our community.

 

@macfanboy is correct. If your wife has an appropriate level of private patient hospital cover for all of the financial year and you only have it for some of the year, you will both have to pay Medicare levy surcharge (MLS) for the part of the year where only your wife is covered. This of course assumes that your combined income for MLS purposes is above the threshold.

 

The M2 Medicare levy surcharge (MLS) section of the tax return instructions explains this quite well.

 

Check out the 'Part-year liability' example about Jill and Kevin near the bottom of the page.

 

If you and all your dependants, including your spouse are covered by an appropriate level of private patient hospital cover for the whole of 2019-20, you and your wife will be MLS exempt for all of that year.

 

Have a look at the private health insurance rebate page on our website for more information.

 

Hope this helps.

 

Thanks,

 

KylieS