Medicare Levy Surcharge

Medicare Levy Surcharge

A tax imposed on higher income earners that do not have an appropriate level of hospital cover.

The Medicare Levy Surcharge is an additional tax paid by Australians who are classified as high income earners and do not have an appropriate level of hospital cover.

 

The Medicare Levy Surcharge is tiered and will vary depending on one’s taxable income.
The table below outlines the income thresholds and surcharges that applied from 1 July 2016. 

  Base Tier Tier 1 Tier 2 Tier 3
Singles Up to $90,000 $90,001 - $105,000 $105,001 - $140,000 $140,001 +
Families Up to $180,000 $180,001 - $210,000 $210,001 - $280,000 $280,001 +
Medicare Surcharge All ages 0.0% 1.0% 1.25% 1.5%

For more information on an appropriate level of hospital cover please contact us.

*For more information on income thresholds, Latrobe encourages members to visit health.gov.au or consult their tax/financial advisor. Alternatively, you can calculate your income by using the calculator at ato.gov.au. “Appropriate hospital cover” refers to hospital cover with a total excess payment in any one year not greater than $500 (singles) or $1000 couples/families. All of Latrobe’s hospital covers, except CoverWise X4 and X5, qualify to avoid the Medicare Levy Surcharge. Extras cover without hospital cover does not qualify.