How is Medicare funded?

The Australian Government funds Medicare through the Medicare Levy and the Medicare Levy Surcharge.

If you work, you pay the Medicare Levy as part of your income tax.

If you are a high-income earner who does not have an appropriate level of private Hospital Cover, you also pay the Medicare Levy Surcharge. 

Revenue from the Medicare Levy and the Medicare Levy Surcharge only partially cover the cost of Medicare. The Australian Government uses general taxation revenue to cover the remaining cost.