What Is the Medicare Levy Surcharge? A Simple Guide for Australians
Introduction If you’ve ever glanced at your tax return and noticed a section about the Medicare Levy Surcharge (MLS), you might be wondering what it means—and whether it applies to you. In this article, we break down the basics of the MLS and how it could impact your income tax in Australia. — What Is the Medicare Levy Surcharge? The Medicare Levy Surcharge is an additional tax that applies to Australian taxpayers who earn above a certain income threshold and do not have an eligible private hospital cover. The surcharge is designed to encourage high-income earners to use the private health system, helping to ease the burden on Medicare. — Who Has to Pay the Surcharge? You may have to pay the MLS if: Your annual income is over $93,000 (for singles) or $186,000 (for couples/families) You do not have an approved private hospital insurance policy These thresholds apply to the 2023–2024 income year and may change annually. — How Much Is the Medicare Levy Surcharge? T...