Does my private health insurance exempt me from the Medicare Levy Surcharge?

Absolutely! All our levels of domestic hospital cover are tax complaint products and will therefore exempt you from incurring the Medicare Levy Surcharge (MLS) at tax time.

Does my overseas cover exempt me from the Medicare Levy Surcharge? 

If you currently hold an OVC policy with HIF and earn above the adjusted taxable incomes detailed below, then you will still incur the Medicare Levy Surcharge at tax time. To reduce your next tax bill and avoid paying the MLS, we strongly recommend that you purchase a domestic hospital policy in addition to your visa-compliant Overseas Visitors Cover (OVC), as your OVC is not considered an adequate tax exemption product by the Australian Tax Office. The good news is HIF’s GoldVital Hospital cover (for singles and couples) is Australia’s best priced level of Hospital cover and could save you hundreds of dollars in avoidable tax.

For families, you can purchase HIF's GoldStarter Hospital cover which will also offset the MLS. 

If you currently hold an OVS policy with HIF and do not earn above the adjusted taxable incomes detailed in the table below, you may be exempt from the MLS by completing the Government’s ‘Medicare Entitlement Statement’

The current 2017/18 Adjusted Taxable Income thresholds are outlined in the table below:

POLICY TYPE  ADJUSTED TAXABLE INCOME
SINGLE
COUPLE/FAMILY
$90,000 or less
$180,000 or less
$90,001 - 105,000
$180,001 - 210,000
$105,001 - 140,000
$210,001 - 280,000
$140,001 or more
$280,001 or more
APPLICABLE MLS0%1.0%1.25%1.5%  

Important. 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.
  • Non-domestic temporary residents can only purchase domestic products for tax saving purposes. 
  • Non-domestic temporary residents are not able to claim on services covered on domestic products.
Category: Member Information
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