Medicare Levy Surcharge
Tax is never good news. But there is one tax you can do something about.
Simply by having Private Health cover you may be able to avoid a tax called the Medicare Levy Surcharge.
How does the Medicare Levy Surcharge work?
The Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and
don't have an appropriate level of hospital cover.
Recently the Government introduced new legislation which changes the income thresholds and the amount added to your tax bill.
The tables below outline the new income thresholds and the surcharge that will apply as of 1 July 2012.*
|Income||Medicare Levy Surcharge|
|$84,000 or less||0.0%|
|$84,001 - $97,000||1.0%|
|$97,001 - $130,000||1.25%|
|$130,001 or more||1.5%|
Couples and families
|Combined Income||Medicare Levy Surcharge|
|$168,000 or less||0.0%|
|$168,001 - $194,000||1.0%|
|$194,001 - $260,000||1.25%|
|$260,001 or more||1.5%|
*Please note the threshold information above is a general guide only and may vary according to your particular circumstances.
For more information visit health.gov.au or speak with your financial adviser.
Avoid paying the Medicare Levy Surcharge
All Medibank's residential hospital covers exempt you from paying the Medicare Levy Surcharge.