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 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 ATI - Adjusted Taxable Income.
The income thresholds increase incrementally, as does the MLS itself, depending on your annual household ATI - Adjusted Taxable Income.
The current 2015/16 Adjusted Taxable Income thresholds are outlined in the table below (slide left and right):
||ADJUSTED TAXABLE INCOME
|$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
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.