Medicare Levy in Australia

Medicare Levy

Medicare Levy Surcharge MLS

A Medicare Levy Surcharge, currently at 1% of income, is charged to Individuals and Families, whose incomes exceed certain thresholds, AND who do not hold a qualifying private patient hospital cover.

The 2008-09 taxable income thresholds for the surcharge are:

• $ 70,000 - single person with no dependents
  
• $140,000 - Family with 1 dependent or no dependents
  
• $141,500 - Family with 2 dependents
  
• and an extra $1,500 for each each extra dependent.
  

The 2009-10 thresholds are:

• $ 73,000 for singles.
  
• $146,000 for couples and families.
  
• plus $1,500 for each dependent child after the first.
  

A hospital cover insurance policy with an excess over $500 for singles, or $1,000 for a family, taken out after 24 May 2000, does NOT qualify for MLS purposes.

If you have a qualifying policy for part of a year, then you will be exempt from the MLS for only that same part of the year.

The above information from:

• Australian Tax Office