New data from the Australian Tax Office shows that the number of people being charged the Medicare Levy Surcharge (MLS) has almost quadrupled over 6 years.
Data found 768,537 Aussies paid the MLS in the 2022-23 financial year, up from 196,807 in 2017. An article in The Australian says the increase is due to rising wages.
The MLS is an extra levy paid at tax time of between 1 and 1.5% for people earning above certain thresholds who don’t have Hospital Cover. For the 2025-26 financial year, the threshold is $101,000 for single people, and $202,000 for couples, single parents and families (combined income).
To avoid the MLS, you must hold Hospital Cover with an excess of $750 or less (for singles) or $1,500 or less (for couples, single parents and families). But healthslips.com.au found choosing low-cost policies that avoid the MLS but do not provide value was a common pitfall, so it is important to research on Hospital Cover that suits your health and financial needs before buying.
Get tips for choosing a good-value Hospital Cover policy to avoid the MLS here, and check whether you have to pay the MLS.
Read The Australian article about the ATO data here.
Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.
Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.
Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.