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
|Singles $90,001 – 105,000
Couples/families $180,001 – 210,000
|Singles $105,001 – 140,000
Couples/families $210,001 – 280,000
|Singles more than $140,001
Couples/families more than $280,001
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.