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Find out if you pay the Medicare Levy Surcharge and how much, based on ATO income thresholds and private hospital cover.
The MLS applies to Australian residents whose income for MLS purposes is above the threshold and who do not have an appropriate level of private hospital cover. Rates are 1%, 1.25% or 1.5% depending on income tier.
Your income for Medicare Levy Surcharge purposes (ATO definition). Use your taxable income plus reportable fringe benefits and reportable super contributions if applicable.
Family = you and your dependants; higher thresholds apply.
Appropriate cover for full year avoids MLS
Annual MLS
$1,500
Tier 2 (1.25% of income)
Income for MLS
$120,000
Threshold used: $97,000
Tier
Tier 2: 1.25% (income $108,000–$144,000)
Consider private hospital cover that meets the requirements to avoid MLS. Cover must be with an Australian-registered health fund.
This calculator is for estimation only. Income for MLS is defined by the ATO and can include reportable fringe benefits, reportable super contributions and certain losses. Private hospital cover must meet specific requirements. For your exact position, see ATO – Medicare levy surcharge and ATO – MLS income thresholds and rates.
The Medicare Levy Surcharge (MLS) is an additional tax of 1-1.5% on top of the standard 2% Medicare levy. It applies to higher-income earners who don't have an appropriate level of private hospital cover.
The surcharge is designed to encourage people to take out private health insurance and reduce demand on the public hospital system. If you earn above the threshold and don't have cover, you pay the surcharge when you lodge your tax return.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2024–25 financial year.