The Medicare Levy Surcharge (MLS) is a tax applied to people who earn above $93,000 as a single and $186,000 as a single parent, couple or family and don't have an appropriate level of Hospital cover.
The MLS is designed to reduce the strain on the public system by encouraging people to go to private hospitals instead.
The Medicare Levy Surcharge starts at 1% and increases up to 1.5% depending on your annual income. Without appropriate Hospital cover, this could result in up to $930 or more in extra tax.
Source: Australian Tax Office. These thresholds apply for the 2023/2024 financial year. For families, and single parent families the threshold increases by $1,500 for each dependant child after the first. There are specific rules for calculating income for Medicare Levy Surcharge purposes. For more information visit the Australian Tax Office.