Medicare Levy Surcharge
What is the Medicare levy surcharge?
The Medicare levy surcharge is an additional 1 – 1.5% surcharge of taxable income imposed on higher income earners who are eligible for Medicare but do not have private Hospital cover. If the surcharge applies to you, your Medicare levy increases from 1.5%, that is paid by most Australian tax payers, to 2.5 – 3% of your taxable income. The Medicare levy surcharge is means tested based on income.
| Income for Medicare levy surcharge purposes |
Medicare levy surcharge |
|---|---|
| Singles less than $88,000 Couples/families less than $176,000 |
0.0% |
| Singles $88,001 – 102,000 Couples/families $176,001 – 204,000 |
1.0% |
| Singles $102,001 – 136,000 Couples/families $204,001 – 272,000 |
1.25% |
| Singles more than $136,001 Couples/families more than $272,001 |
1.5% |
*On a family membership the income threshold increases by $1,500 for each additional child. Thresholds are applicable for 1 July 2013 to 30 June 2014.
How to avoid the Medicare levy surcharge?
If you are single and earn more than $88,000 a year or a couple/family earning more than $176,000 per year, you can avoid paying the Medicare levy surcharge by taking out any of our Hospital or Combined cover products.
The following Teachers Health Fund covers exempt members from paying the Medicare levy surcharge:
Extras cover alone will not exempt you from the additional surcharge.
