More people paying Medicare Levy Surcharge, new ATO data shows

The number of Australians paying the Medicare Levy Surcharge at tax time continues to rise. New data from the Australian Tax Office shows the number of people who paid the Surcharge jumped from 768,537 in 2022-23, to 885,087 in 2023-24 – a 15% increase. 

The Medicare Levy Surcharge (MLS) applies to people who earn above the ATO income threshold and do not have Hospital Cover covering all members of their household. The thresholds change every financial year. 

Last year, healthslips.com.au reported that the MLS had risen four-fold between 2017 and 2022-23, due to rising wages. The latest data shows a jump of almost 350% between 2017 and 2023-24. 

“Over time, as salaries increase, more people naturally cross those thresholds even though their real purchasing power may not feel much higher,” accountant Marianna Agostino from Conscious Wealth Creation told healthslips.com.au last year. “For many Australians, the MLS kicks in well before they’d consider themselves ‘high income earners’.”  

For the 2025-26 financial year, the MLS applies to individuals earning above $101,000, or couples, single parents and families earning above $202,000 who do not have Hospital Cover. From 1 July 2026, the thresholds increase to incomes above $105,000 for individuals and $210,000 for families. According to the ABS, the average Australian full-time salary is around $106,652 per year. 

Read tips for avoiding the Medicare Levy Surcharge here. 

Trudie McConnochie

Writer and Researcher

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.

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