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.

From 1 July 2023 the MLS Income thresholds are outlined in the table below (slide left and right):

$93,000 or less
$186,000 or less
$93,001 - 108,000
$186,001 - 216,000
$108,001 - 144,000
$216,001 - 288,000
$144,001 or more
$280,001 or more
APPLICABLE MLS0%1.0%1.25%1.5%  

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 before their 31st birthday. The general rule is that for every year over the age of 30 you don’t have private hospital cover, a 2% loading is applied to the cost of your insurance if you decide to take out hospital cover later in life. The 2% loading will increase each year until it reaches the maximum amount, which is 70%!

For example, a single 37 year old taking out Hospital cover for the first time would pay 14% LHC loading - so it really can pay to take out private hospital cover sooner rather than later.

For couples, both person’s LHC loading are combined and then halved. For example, a couple aged 33 and 36 years (joining hospital cover for the first time) would generate a combined loading of 18% (6% + 12%), so the final loading that is applied to their joint policy is 9%.

Some people are exempt from LHC loading or may be subject to special rules, so it’s important to understand how LHC loading applies to you. Visit our LHC page to learn more.

Lifetime Health Cover Information

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