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 of 1%, 1.25% or 1.5% is levied on:
- your taxable income
- total reportable fringe benefits
- any amount on which family trust distribution tax has been paid.
See also:
Income threshold and rates from 2014–15 to 2019–20
Below are income thresholds and MLS rates that apply for 2014–15, 2015–16, 2016–17, 2017–18, 2018–19 and 2019–20.
Use this information to work out which income threshold and MLS rate apply to you.
MLS income thresholds and rates from 2014–15 to 2019–20
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%
|
If you have two or more dependent children, the family income threshold is increased by $1,500 for each dependent child after the first child.
Example: Medicare levy surcharge for a single adult
Josh is 35 years old, single, and doesn't have the appropriate level of private patient hospital cover. In 2019–20, Josh’s taxable income is $90,000.
When Josh completes his tax return, he also completes the income test section and declares:
- reportable fringe benefits of $20,000
- net investment losses of $7,000.
Josh’s taxable income, reportable fringe benefits and net investment losses will be added together to get his income for Medicare levy surcharge (MLS) purposes:
- $90,000 + $20,000 + $7,000 = $117,000.
- $117,000 makes Josh a Tier 2 income earner for determining his percentage of the Medicare levy surcharge, which is 1.25%.
The amount of MLS is only calculated on his taxable income and reportable fringe benefits. Although the net investment loss is taken into account when working out income for MLS purposes, it is not taken into account when working out the actual amount of MLS. In 2019–20, Josh’s MLS liability is $1,375:
- ($90,000 taxable income + $20,000 reportable fringe benefits) × 1.25% = $1,375.
End of exampleSee 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%
|
If you have two or more dependent children, the family income threshold is increased by $1,500 for each 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%
|
If you have two or more dependent children, the family income threshold is increased by $1,500 for each 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%
|
If you have two or more dependent children, the family income threshold is increased by $1,500 for each dependent child after the first child.
You can use the Medicare levy surcharge income threshold information to work out which income threshold and MLS rates apply to you.