Guide to Medicare levy

When do you have to pay the surcharge?

You will have to pay MLS for any period during the year that you or any of your dependants did not have private patient hospital cover and you were:

a single person with no dependants and had income for MLS purposes greater than $80,000 (2011-12), or
a member of a family and the combined income for MLS purposes of you and your spouse (if you had one for the whole of the year) was above the relevant family surcharge threshold shown in the family surcharge threshold table below.

If your spouse died during the income year and you did not have another spouse before the end of the year, we consider you to have had a spouse until the end of the income year and you retain the benefit of the family surcharge threshold.

Family surcharge threshold

Number of dependent children

Surcharge income threshold
(2011-12)

0-1

$160,000

2

$161,500

3

$163,000

4

$164,500

More than 4 dependent children

$164,500 plus $1,500 for each additional child

To work out your income for Medicare levy surcharge purposes, refer to our Income for (Medicare levy) surcharge purposes calculator.

It is possible that both the single and family surcharge thresholds applied to you at different periods during the year because your circumstances changed during the year.

However, if only one of the MLS thresholds (single or family) applied to you for the whole of the year and:

your income or combined income for MLS purposes did not exceed this threshold, you are not liable for MLS for any part of the year
you and your spouse's combined income for MLS purposes exceeded the family surcharge threshold but your own income for MLS purposes did not exceed $19,404, you are not liable for MLS for any part of the year; however, your spouse may still be liable for MLS
your income or combined income for MLS purposes exceeded this threshold then you will have to pay MLS for the whole of the income year if for the whole of the year you or any of your dependants

did not have an appropriate level of private patient hospital cover, and
were not in one of the Medicare levy exemption categories.

What if your circumstances changed during the year?

If you had a new spouse or you separated from your spouse, or you became or ceased to be a sole parent, both the single and the family surcharge thresholds may apply to you for different periods.

For more information, refer to the section 'What if your circumstances changed during the year?' in M2 - Medicare levy surcharge.

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Last Modified: Monday, 25 March 2013