Don’t have private hospital cover?

Still confused about the Medicare Levy Surcharge?

Don't worry, you're not alone. The Medicare Levy Surcharge (MLS) is a Federal Government initiative, designed to encourage individuals to take out private hospital cover and, where possible, use the private hospital system to reduce the demand on the public system. The MLS is levied on Australian taxpayers who do not have domestic private hospital cover and who earn above a certain income. The income thresholds increase incrementally, as does the MLS itself, depending on your annual household income for MLS purposes. Click here for more information about MLS.

The MLS income thresholds increase incrementally, as does the MLS itself, depending on your annual household income for MLS purposes. From 1 July 2023 the MLS Income thresholds are outlined in the table below (slide left and right):

Please note: The thresholds increase annually based on growth in Average Weekly Ordinary Time Earnings. Single parents & couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.

Hospital Cover Comparison Table Download Health Cover Guide

What about Lifetime Health Cover loading?

The Federal Government introduced the Lifetime Health Cover (LHC) loading to encourage Australians to take out private hospital cover at a younger age. Basically, it recognises the length of time you’ve had private health insurance and rewards that loyalty by offering lower premiums – so the earlier you take out health cover, the cheaper your premiums. For every year over the age of 30 that you don’t have private hospital cover, a 2% loading is applied to the cost of your insurance (and increases each year until it reaches 70%).

For example, a single 37 year old would pay 14% LHC loading - so it really pays to take out private hospital cover now. For couples and families however, your loading is initially calculated based on your respective dates of birth and then halved. For example, a couple aged 33 and 36 years would generated a combined loading of 18% initially (6% + 12%), so the final loading that is applied to their joint policy is 9%. Visit our LHC page to learn more.

Lifetime Health Cover Information