Medicare Levy Surcharge Calculator
What is the Medicare Levy Surcharge?
The Medicare Levy Surcharge (MLS) is an extra tax (1%–1.5%) for higher-income Australians who do not have suitable private hospital cover. The surcharge is in addition to the standard 2% Medicare Levy. MLS is calculated based on your income, family status, and number of dependents. Having adequate private hospital cover for the full year usually exempts you from the surcharge.
The Medicare Levy Surcharge (MLS) is an extra tax (1%–1.5%) for higher-income Australians who do not have suitable private hospital cover. The surcharge is in addition to the standard 2% Medicare Levy. MLS is calculated based on your income, family status, and number of dependents. Having adequate private hospital cover for the full year usually exempts you from the surcharge.
How to Use the Medicare Levy Surcharge Calculator
- Select whether you had private hospital cover for the entire financial year, and specify your policy’s excess level. Only hospital cover with an excess of $750 or less (for singles) or $1,500 or less (for families) is considered adequate.
- Choose your membership type: Single, Couple, Family, or Single Parent. If you select Family or Single Parent, indicate the number of dependent children.
- Enter your annual income for MLS purposes. If your membership type is Couple or Family, provide your partner’s annual income as well. Income for MLS includes taxable income, reportable fringe benefits, and certain superannuation contributions.
- Press the “Calculate” button. The calculator will instantly display your estimated Medicare Levy Surcharge, highlight the relevant income tier, and provide a brief explanation of the calculation, including the formula used.
- Review the result and explanation to understand if you are liable for the surcharge, how much you may owe, and what steps (such as obtaining private hospital cover) could help you avoid the MLS in the future.