94,000. The surcharge rate is 1%, 1.25%, or 1.5% depending on your income level. **How to avoid it:** You must have an 'appropriate level' of private hospital insurance for the full year. If you get insurance part-way through the y"}}]}

What is the Medicare Levy Surcharge (MLS) and how can I avoid it?

The Medicare Levy Surcharge (MLS) is an *extra* tax (on top of the 2% Medicare Levy) for Australians who earn above a certain income and do not have private hospital cover. **Income thresholds (2024-25):** - **Singles:** Starts at $97,000. - **Families:** Starts at $194,000. The surcharge rate is 1%, 1.25%, or 1.5% depending on your income level. **How to avoid it:** You must have an 'appropriate level' of private hospital insurance for the full year. If you get insurance part-way through the year, you'll pay a pro-rata surcharge for the days you weren't covered. General 'extras' cover (like dental/optical) does not exempt you from the MLS; it must be hospital cover.

  • Additional 1% to 1.5% tax for higher earners
  • Starts at $97k for singles / $194k for families
  • Avoided by having private hospital insurance
  • Hospital cover is required; 'extras' cover is not enough
  • Calculated based on your 'Income for MLS purposes'