Medicare levy surcharge
What is the Medicare levy surcharge?
Based on your means tested taxable income, the Medicare levy surcharge is an additional 1.0 – 1.5% surcharge that is imposed on higher income earners who are eligible for Medicare but do not have private Hospital cover. If this surcharge applies to you, your Medicare levy increases from 2.0% (which is what most Australians pay) to 3.0 – 3.5% of your taxable income.
| Income for Medicare levy surcharge purposes |
Medicare levy surcharge |
|---|---|
| Singles less than $90,000 Couples/families less than $180,000 |
0.0% |
| Singles $90,001 – 105,000 Couples/families $180,001 – 210,000 |
1.0% |
| Singles $105,001 – 140,000 Couples/families $210,001 – 280,000 |
1.25% |
| Singles more than $140,001 Couples/families more than $280,001 |
1.5% |
You can avoid paying the Medicare levy surcharge by taking out any of Nurses & Midwives Health's Hospital or Combined Cover products. The Medicare levy surcharge is calculated on a pro rata basis, so if you fall within the relevant thresholds you'll be taxed for any days that you are without cover.