What are private health insurance surcharges?

Australian Government private health insurance surcharges 

The Australian Government imposes 2 private health insurance surcharges:

1. Medicare Levy Surcharge (for people on higher incomes)
2. Lifetime Health Cover Loading (for people who take out private health insurance later in life).

These are designed to encourage you to take out private health insurance.

Medicare Levy Surcharge 

The Medicare Levy Surcharge is a levy you have to pay if you do not have Hospital Cover and earn above a certain income.

The surcharge covers you and your dependants, including:

• your partner
• any children under 21
• any children who are full-time students and under 25.

Lifetime Health Cover Loading 

The Lifetime Health Cover Loading is a surcharge that is designed to encourage you to take out private health insurance earlier in life and keep it.

The loading applies to Hospital Cover only.

In certain circumstances, you may be exempt from the Lifetime Health Cover Loading.