The Medicare Levy Surcharge is a 1% surcharge imposed on people who earn above a certain income and who do not have private hospital cover. This is in addition to the standard Medicare Levy of 1.5%.
If you do not have private hospital cover or have suspended your cover to travel, you must pay the Medicare Levy Surcharge if:
- you are single and have an annual taxable income more than $70,000 or
- your and your partner's combined annual taxable income is more than $140,000.
The Medicare Levy Surcharge income threshold increases by $1,500 per child, after the first child.
Not registering a dependant/newborn could incur the Medicare Levy Surcharge.
Prior to 16 October 2008, the Medicare Levy Surcharge income thresholds were $50,000 for a single person and $100,000 for a couple. New thresholds were passed into legislation on 16 October 2008 and will apply to your income tax return for the entire 2008/09 financial year. By maintaining your private hospital cover with Health Partners you will be exempt from the Medicare Levy Surcharge. You will also have the peace of mind that you’ll be covered as a private patient in any participating hospital of your choice Australia-wide.... if you need it.
For more detailed information on the 1% Medicare Levy Surcharge, including when the Medicare levy applies, please visit the Department of Health and Ageing or call the ATO on 13 28 61. |