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  • Income thresholds and rates for the Medicare levy surcharge

    Once you determine your income for Medicare levy surcharge (MLS) purposes, you can use the MLS income threshold tables to work out which MLS rate applies to you.

    The MLS rate is either 1%, 1.25% or 1.5% based on the total of:

    • your taxable income
    • total reportable fringe benefits
    • any amount on which family trust distribution tax has been paid.

    On this page:

    See also:

    Income threshold and rates from 2014–15 to 2022–23

    Below are income thresholds and MLS rates that apply for 2014–15, 2015–16, 2016–17, 2017–18, 2018–19, 2019–20, 2020–21, 2021–22 and 2022–23.

    Use this information to work out which income threshold and MLS rate apply to you.

    MLS income thresholds and rates from 2014–15 to 2022–23

    Threshold

    Base tier

    Tier 1

    Tier 2

    Tier 3

    Single threshold

    $90,000 or less

    $90,001 – $105,000

    $105,001 – $140,000

    $140,001 or more

    Family threshold

    $180,000 or less

    $180,001 – $210,000

    $210,001 – $280,000

    $280,001 or more

    Medicare levy surcharge

    0%

    1%

    1.25%

    1.5%

    The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

    Example: Medicare levy surcharge for a single adult

    In the 2020–21 income year, Tom doesn't have the appropriate level of private patient hospital cover and is:

    • 35 years old
    • single without any dependants.

    Tom’s taxable income is $90,000. When Tom completes his tax return, he also completes the income test section and declares total reportable fringe benefits of $27,000.

    Tom’s income for MLS purposes is $117,000 ($90,000 taxable income and $27,000 total reportable fringe benefits).

    Therefore, Tom is a Tier 2 income earner and the Tier 2 MLS rate that applies to him is 1.25%.

    The amount of MLS is calculated on his taxable income of $90,000 and total reportable fringe benefits of $27,000.

    Tom’s MLS liability for 2020–21 is $1,462.50 ($117,000 × 1.25%).

    End of example

    See also:

    Income thresholds and rates for 2013–14

    MLS income thresholds and rates 2013–14

    Threshold

    Base tier

    Tier 1

    Tier 2

    Tier 3

    Single thresholds

    $88,000 or less

    $88,001 – $102,000

    $102,001 – $136,000

    $136,001 or more

    Family thresholds

    $176,000 or less

    $176,001 – $204,000

    $204,001 – $272,000

    $272,001 or more

    Medicare levy surcharge

    0%

    1%

    1.25%

    1.5%

    The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

    Income levels and rates for 2012–13

    MLS income thresholds and rates 2012–13

    Threshold

    Base tier

    Tier 1

    Tier 2

    Tier 3

    Single thresholds

    $84,000 or less

    $84,001 – $97,000

    $97,001 – $130,000

    $130,001 or more

    Family thresholds

    $168,000 or less

    $168,001 – $194,000

    $194,001 – $260,000

    $260,001 or more

    Medicare levy surcharge

    0%

    1%

    1.25%

    1.5%

    The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

    Income levels and rates for 2010–11 and 2011–12

    MLS income thresholds and rates 2010–11 and 2011–12

    Threshold

    2010–11
    Tier 1

    2010–11
    Tier 2

    2011–12
    Tier 1

    2011–12
    Tier 2

    Single thresholds

    $77,000 or less

    $77,001 or more

    $80,000 or less

    $80,001 or more

    Family thresholds

    $154,000 or less

    $154,001 or more

    $160,000 or less

    $160,001 or more

    Medicare levy surcharge

    0%

    1%

    0%

    1%

    The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

    See also:

    Last modified: 05 Jul 2021QC 49961