What Is The Medicare Levy Surcharge?
The Medicare Levy Surcharge (MLS) is an additional tax placed on individuals and families who don't have eligible private hospital cover and earn a certain taxable income. It aims to encourage Australian Residents to take up private health insurance and reduce the burden on the public health system.
How does this affect me?
The surcharge is dependent on your income and if above the threshold is calculated at a rate of 1%-1.5% depending on your income. This tax is payable on top of your Medicare Levy of 2.0%.
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+ Based on a single person earning a taxable income more than $90,000 per year from 1 July 2014, and no Lifetime Health Cover Loading.
#All Budget Direct hospital Policies qualify as an appropriate level of cover by the ATO.