Medicare Levy Surcharge – Tax Refund On Spot

The Medicare levy surcharge (MLS) is planned to reduce the demand on the public Medicare system.

You will be required to pay the MLS if your income for MLS purposes is over the base income threshold and you or your families do not have an suitable level of private patient hospital cover. This applies if not you are excused from paying the Medicare levy and your dependents are also exempt or have an suitable level of private cover.

The base income threshold is $90,000 for singles and $180,000 for families. However, you do not have to pay the MLS if your family income exceeds the threshold but your own income for MLS purposes was $20,896 or less.

Private patient hospital cover is provided by registered health insurers for hospital action provided in an Australian hospital or day hospital. You must arrange and pay for your cover straight with the insurer.

For singles, an appropriate level of cover must have an excess of $500 or less. Couples or families must have an excess of $1,000 or less.

General cover, commonly known as ‘extras’, is not private patient hospital cover. It covers items such as optical, dental, physiotherapy or chiropractic treatment.

We will apply the rate of MLS that corresponds with your income for MLS purposes. If you have to pay the surcharge, it will be incorporated with the Medicare levy and shown as one amount on your notice of assessment called Medicare levy and surcharge.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at