Medicare Levy Surcharge guide for 2023-24
This year ends on 30 June 2024. You lodge it in your 2024 return. Check it now if you are deciding whether to take out cover.
Do you have to pay it?
The Medicare Levy Surcharge (MLS) is an extra tax. You pay it if you earn above the threshold and hold no private hospital cover. It is separate from the 2% Medicare levy, which almost everyone pays.
Two things decide it. Your income, and whether you hold eligible cover.
Singles
$93,000
Earn above this and MLS applies, unless you hold hospital cover.
Couples and families
$186,000
Your incomes are added together. Add $1,500 for each child after the first.
What it costs
MLS is 1% to 1.5% of your income. The rate rises with your income tier. These are the 2023-24 rates.
Singles
| Income | You pay |
|---|---|
| $93,000 or less | 0% |
| $93,001 – $108,000 | 1% |
| $108,001 – $144,000 | 1.25% |
| $144,001 or more | 2% |
Couples and families
| Income | You pay |
|---|---|
| $186,000 or less | 0% |
| $186,001 – $216,000 | 1% |
| $216,001 – $288,000 | 1.25% |
| $288,001 or more | 2% |
The rate applies to your whole income, not just the part above the threshold. On $113,000 that is about $1,130 a year.
What counts as cover
Not every policy clears MLS. Yours must meet three tests.
It has to be hospital cover
Extras cover does not count, and nor does ambulance-only. Accident-only hospital policies do clear MLS, but they pay for very little else.
The excess must be $750 or less
Singles can hold up to $750. Couples and families can hold up to $1,500. Go higher and the policy does not clear MLS.
It must cover the whole year
MLS is worked out day by day. Every day without cover is a day you are charged. The year ended 30 June 2024.
Four mistakes that cost money
Buying extras cover
Extras cover pays for dental and optical. It does not remove MLS. You need hospital cover.
Picking a high excess
An excess above $750 for singles does not qualify. You pay the premium and the tax.
Counting salary only
MLS income is wider than salary. It adds fringe benefits, reportable super and investment losses.
Starting cover late
MLS is worked out daily. Cover from January only clears about half the year.
Work out your own number
Put your income below and pick 2023-24. You will see what MLS costs you, and whether cover would cost less than the tax.
General information only, based on published ATO figures. Check your position with the ATO or a registered tax agent.
Income & Household
Health Insurance Details
1 July 2026 – 30 June 2027
The premium for eligible hospital cover. Not sure? The comparison below fills real prices in for you.
Advanced options
Must be $750 or less (singles) or $1,500 or less (families) to clear MLS.
Your result
-$961
Paying the surcharge looks cheaper
This compares your estimated Medicare Levy Surcharge against the cost of hospital cover for the selected period.
Income used
Taxable income + reportable benefits
MLS is a tax surcharge. Lifetime Health Cover loading is different. LHC increases hospital cover premiums if it applies.
FY 2026-27 coverage period
The later your cover starts in the financial year, the fewer days are covered and the more surcharge may remain payable.
The bottom line
On this income you sit under the 2026-27 surcharge threshold, so no Medicare Levy Surcharge applies. Hospital cover is then a health decision rather than a tax one, because there is no surcharge for it to offset.
Income Break-Even Point
$115,000
If your income stays above this line, private insurance is objectively cheaper than paying the surcharge.
ATO Policy Compliance
To clear MLS you need hospital cover with an excess of $750 or less (singles) or $1,500 or less (families). Extras-only cover does not count.
Compliant cover
Policies that clear your surcharge
To remove your $0 surcharge, you need hospital cover with an excess of $750 or less. These are the cheapest Bronze Plus policies from five major insurers.
Prices from privatehealth.gov.au, July 2026 release, for WA. The government rebate is applied for your income tier. Under-30 discounts are not included, so you may pay less. Links may earn us a commission at no cost to you.
MedibankBronze Plus Value
HBFLite Bronze Hospital Plus
BupaBronze Plus Simple Hospital
nibBronze Protect Hospital Plus
