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Medicare levy surcharge income, thresholds and rates

Based on your income for MLS purposes, you can work out which income threshold and MLS rates apply to you.

Last updated 2 April 2023

Income for Medicare levy surcharge purposes

Income for Medicare levy surcharge (MLS) purposes is used to work out whether you have to pay the MLS and the rate you will pay.

If you have a spouse, we will use your combined income for MLS purposes.

Your income for MLS purposes is the sum of the following items for you (and your spouse, if you have one):

  1. Taxable income  
  2. Reportable fringe benefits.
  3. Total net investment losses – the sum of  
  4. Reportable super contributions – the sum of  
  5. If you have a spouse, their share of the net income of a trust on which the trustee must pay tax (under section 98 of the Income Tax Assessment Act 1936) and which has not been included in their taxable income.

If you had exempt foreign employment income, add it to your taxable income if your taxable income is $1 or more.

If you meet both of the following conditions, you can reduce income for MLS purposes by any taxed element of the super lump sum, other than a death benefit, that does not exceed your (or your spouse's) low rate cap:

  • you (or your spouse) are aged from your (or their) preservation age to under 60 years old
  • you (or your spouse) received a super lump sum.

Income threshold and rates 2023–24

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

These income thresholds and MLS rates apply for the 2023–24 income year.

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

MLS income thresholds and rates for 2023–24

Threshold

Base tier

Tier 1

Tier 2

Tier 3

Single threshold

$93,000 or less

$93,001 – $108,000

$108,001 – $144,000

$144,001 or more

Family threshold

$186,000 or less

$186,001 – $216,000

$216,001 – $288,000

$288,001 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 threshold and rates from 2014–15 to 2022–23

These income thresholds and MLS rates apply for income years from 2014–15 to 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.

Start of example

Example: Medicare levy surcharge for a single adult

In the 2022–23 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 2022–23 is $1,462.50 ($117,000 × 1.25%).

End of example

See Family and dependants for Medicare levy surcharge purposes for more information about what is considered family and dependant for the MLS.

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 thresholds 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 thresholds 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.

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