Medicare Levy Surcharge (MLS) is a levy you should be aware of. Most Australian taxpayers are charged a 2% Medicare Levy. However, those who do not have appropriate private hospital cover may have to pay an additional levy called the Medicare Levy Surcharge (MLS).

A 1% MLS applies to couples or families without hospital cover who have a combined annual income greater than $186,000*, and singles earning more than $93,000*. This increases aligned to the income tiers as shown in your State Premiums & Benefits Guide. Family thresholds are increased by $1,500 for the second and subsequent dependent child.

Both partners must have hospital cover; otherwise both have to pay the levy. If you have dependent children they also need to be covered by a policy or you may have to pay the levy, even if you’re separated. If you’re unsure how this might affect you, we recommend you seek further advice from your tax advisor or the Australian Taxation Office.

For details on what income is included in the assessment please contact the ATO or refer to their website.

*FY23/24 income thresholds