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In 2022–23, your income for MLS purposes was $90,000 or less

Last updated 31 May 2023

Use this if your income for the whole income year, was $90,000 or less and you:

  • only had a spouse for only part of the income year because you had a new spouse or separated from your spouse or
  • became or ceased to be a sole parent.

If this is not you, return to Work out the number of days.

You will not have to pay the Medicare levy surcharge for all of 2022–23.

Enter 365 into myTax at Number of days that you do not have to pay the surcharge.

Go to Completing this section (step 4).

In 2022–23, your income for MLS purposes was between $90,001 and $180,000 (plus $1,500 for each dependent child after the first).

Use this if your income for the whole income year was between $90,001 and $180,000 (plus $1,500 for each dependent child after the first) and you:

  • had a spouse for only part of the income year because you had a new spouse or separated from your spouse or
  • became or ceased to be a sole parent.

If this is not you, return to Work out the number of days.

Follow the steps below to work out the number of days you do not have to pay the surcharge.

Step 1

Work out the number of days when you had dependants (spouse or dependent children).

For any days in 2022–23 when you had dependants (spouse or dependent children), you will not have to pay the Medicare levy surcharge.

Retain the number as you will need it for step 6.

When working out the number of days:

  • You can use our Calculate days tool.
  • The start date can't be before 01/07/2022.
  • The end date can't be after 30/06/2023.

Go to step 2.

Step 2

For any days in 2022–23 you were single with no dependants, did you have an appropriate level of private patient hospital cover?
This might apply if you had cover for only some days in 2022–23 because you took out or cancelled private health insurance part way through the year.

Note: If you had cover for all days in 2022–23, go to Completing this section (step 1) answer 'Yes' and follow the instructions.

Yes – go to step 3.
No – go to step 4.

Step 3

Work out the number of days when you were single with no dependants and had an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 6.

When working out the number of days:

  • You can use our Calculate days tool.
  • The start date can't be before 01/07/2022.
  • The end date can't be after 30/06/2023.

Go to step 4.

Step 4

For any days in 2022–23 you were single with no dependants, were you in a Medicare levy exemption category?

Yes – go to step 5.
No – go to step 6.

Step 5

Work out the number of days when you were single with no dependants and:

  • were in a Medicare levy exemption category
  • did not also have an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 6.

When working out the number of days:

  • You can use our Calculate days tool.
  • The start date can't be before 01/07/2022.
  • The end date can't be after 30/06/2023.

Go to step 6.

Step 6

You don't have to pay the Medicare levy surcharge for any days in 2022–23 that:

  • you had dependants – spouse or dependent children (Step 1)
  • you were single with no dependants and
    • had an appropriate level of private patient hospital cover (Step 3), or
    • were in a Medicare levy exemption category only (Step 5).
     

Add together the total the number of days calculated at Step 1, Step 3 and Step 5. Enter the number at Number of days you do not have to pay the surcharge.

If the total number of days calculated is more than 365, check your calculations, as any overlapping days are only counted once. See Overlap of days.

Go to Completing this section (step 4).

Examples – working out the number of days

Use the following examples to help you work out the number of days you do not have to pay the surcharge.

  • Example 8 – Separated during the year, income between $90,001 and $180,000 (plus $1,500 for each dependent child after the first), no private patient hospital cover, not in a Medicare exemption category.
  • Example 9 – Married during the year, income between $90,001 and $180,000 (plus $1,500 for each dependent child after the first), no private patient hospital cover, not in a Medicare exemption category.

Choose where to go next from the following:

  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

Example 8 – Separated during the year, income between $90,001 and $180,000 (plus $1,500 for each dependent child after the first), no private patient hospital cover, not in a Medicare exemption category.

Brenda and Eddie separated on 12 October 2022 after having lived together as a couple on a genuine domestic basis for some years. Both stayed single for the remainder of the year.

In 2022–23, Brenda:

  • had no dependent children
  • had an income for MLS purposes  
  • and her partner Eddie
    • did not have any private patient hospital cover
    • were not in a Medicare exemption category.
     

In myTax at the Medicare levy surcharge (MLS) heading:

  • Brenda answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2022 to 30 June 2023?
    • Brenda and her partner Eddie did not have any private patient hospital cover for any days in 2022–23.
    • Brenda answers No.
     
  • myTax shows:
    • the ‘You may have to pay the Medicare levy surcharge’ alert message
    • the Number of days you do not have to pay the surcharge entry box.
     

Brenda works out the number of days she doesn’t have to pay the surcharge.

  • Number of days Brenda was living with Eddie as a family:
    • Brenda and Eddie were living together as a family from 1 July 2022 until 12 October 2022.
    • Brenda doesn't use Eddie's income to compare to the threshold because she was a member of a family for only part of the year. Brenda must compare her own income for MLS purposes with the family surcharge threshold for her circumstances ($180,000).
    • As Brenda's own income for MLS purposes was less than the family surcharge threshold, she does not have to pay the surcharge for this period – from 1 July 2022 to 12 October 2022.
    • To work out the number of days, she uses our Calculate days tool (you may prefer another calculation method) and enters the following:
      • Period start date – 01/07/2022
      • Period end date – 12/10/2022
      • The result is 104 days.
       
     
  • Number of days Brenda was single:
    • Brenda was single for the period 13 October 2022 to 30 June 2023.
    • Brenda must compare her own income for MLS purposes with the single surcharge threshold of $90,000.
    • As Brenda’s own income for MLS purposes was more than the single surcharge threshold, she does have to pay the surcharge for this period.
     

Brenda enters 104 into myTax at Number of days you do not have to pay the surcharge.

End of example

Choose where to go next from the following:

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

Example 9 – Married during the year, income between $90,001 and $180,000, no private patient hospital cover, not in a Medicare exemption category

At the beginning of 2022–23, Will and Louisa were both single. They got married on 17 March 2023 and are still married on 30 June 2023. They did not live together as a couple on a genuine domestic basis before their marriage.

In 2022–23, Will:

  • had no dependent children
  • had an income for MLS purposes  
  • and his partner Louisa
    • did not have any private patient hospital cover
    • were not in a Medicare exemption category.
     

In myTax at the Medicare levy surcharge (MLS) heading:

  • Will answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2022 to 30 June 2023?
    • Will and his partner Louisa did not have any private patient hospital cover for any days in 2022–23.
    • Will answers No.
     
  • myTax shows:
    • the ‘You may have to pay the Medicare levy surcharge’ alert message
    • the Number of days you do not have to pay the surcharge entry box.
     

Will works out the number of days he doesn’t have to pay the surcharge.

  • Number of days Will was single:
    • Will was single for the period 1 July 2022 to 16 March 2023.
    • Will must compare his own income for MLS purposes with the single surcharge threshold of $90,000.
    • As Will’s own income for MLS purposes was more than the single surcharge threshold, he is liable for MLS for this period.
     
  • Number of days Will was married to Louisa living as a family:
    • Will and Louisa were living together as a family from 17 March 2023 until 30 June 2023.
    • Will doesn't use Louisa's income to compare to the threshold because he was a member of a family for only part of the year.
    • Will must compare his own income for MLS purposes with the family surcharge threshold for his circumstances ($180,000).
    • As Will's own income for MLS purposes was less than the family surcharge threshold, he does not have to pay the surcharge for this period – from 17 March 2023 to 30 June 2023.
    • To work out the number of days, he uses our Calculate days tool (you may prefer another calculation method) and enters the following:
      • Period start date – 17/03/2023
      • Period end date – 30/06/2023
      • The result is 106 days.
       
     

Will enters 106 into myTax at Number of days you do not have to pay the surcharge.

End of example

Choose where to go next from the following:

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

In 2022–23, your income for MLS purposes was more than $180,000 (plus $1,500 for each dependent child after the first).

Use this if your income for the whole income year was more than $180,000 (plus $1,500 for each dependent child after the first) and you:

  • had a spouse for only part of the income year because you had a new spouse or separated from your spouse or
  • became or ceased to be a sole parent.

If this is not you, return to Work out the number of days.

Notes:

  • For any days you are single and did not have dependent children, answer all the following questions just for you.
  • Your dependants include a spouse and any dependent children.

Follow the steps below to work out the number of days you do not have to pay the surcharge.

Step 1

For any days in 2022–23, did you and all your dependants (if any) have an appropriate level of private patient hospital cover?
This might apply if you and all your dependants (if any) had cover for only some days in 2022–23 because part way through the year:

  • you took out or cancelled private health insurance
  • dependants were added or removed from the policy.

Note: If you and all your dependants (if any) had cover for all days in 2022–23, go to Completing this section (step 1) answer 'Yes' and follow the instructions.


Yes – go to step 2.
No – go to step 3.

Step 2

Work out the number of days when you and all your dependants (if any) had an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 5.

When working out the number of days:

  • You can use our Calculate days tool.
  • The start date can't be before 01/07/2022.
  • The end date can't be after 30/06/2023.

Go to step 3.

Step 3

For any days in 2022–23, were you and all your dependants (if any) in a Medicare levy exemption category?

Yes – go to step 4.
No – go to step 5.

Step 4

Work out the number of days when you and all your dependants (if any):

  • were in a Medicare levy exemption category
  • did not also have an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 5.

When working out the number of days:

  • You can use our Calculate days tool.
  • The start date can't be before 01/07/2022.
  • The end date can't be after 30/06/2023.

Note: Your dates should not include any days when you and all your dependants (if any) also had an appropriate level of private patient hospital cover.

Go to step 5.

Step 5

If you answered No at both Step 1 and Step 3:

Otherwise, you don't have to pay the Medicare levy surcharge for any days in 2022–23 that you and all your dependants (if any):

  • had an appropriate level of private patient hospital cover (Step 2)
  • were in a Medicare levy exemption category only (Step 4).

Add together the total number of days calculated at Step 2 and Step 4. Enter the number at Number of days you do not have to pay the surcharge.

If the total number of days calculated is more than 365, check your calculations, as any overlapping days are only counted once. See Overlap of days.

Go to Completing this section (step 4).

Example – working out the number of days

Use the following examples to help you work out the number of days you do not have to pay the surcharge.

  • Example 10 – Married during the year, income more than $180,000 (plus $1,500 for each dependent child after the first), taxpayer had private patient hospital cover but dependants did not, no one was in a Medicare exemption category.

Choose where to go next from the following:

  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

Example 10 – Married during the year, income more than $180,000 (plus $1,500 for each dependent child after the first), taxpayer had private patient hospital cover but dependants did not, no one was in a Medicare exemption category.

Paul was single and had no dependants until he married Joanne on 15 December 2022. At that time, Joanne's 4 children became Paul's dependants as they lived in the same house and he contributed to their support.

In 2022–23, Paul:

  • had an income for MLS purposes more than the family surcharge threshold of $184,500. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out)
  • had private patient hospital cover, but his dependants did not
  • and his dependants were not in a Medicare levy exemption category.

In myTax at the Medicare levy surcharge (MLS) heading:

  • Paul answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2022 to 30 June 2023?
  • Paul had private patient hospital cover, but his dependants did not have cover for the any of 2022–23.
    • Paul answers No.
     
  • myTax shows:
    • the ‘You may have to pay the Medicare levy surcharge’ alert message
    • the Number of days you do not have to pay the surcharge entry box.
     

Paul works out the number of days he doesn’t have to pay the surcharge. Paul must consider his cover together with his relationship and dependency status.

  • Number of days Paul was single and had private patient hospital cover for himself:
    • Paul does not have to pay the surcharge for the days he was single and had private patient hospital cover – from 1 July 2022 to 15 December 2022.
    • To work out the number of days, he uses our Calculate days tool (you may prefer another calculation method) and enters the following:
      • Period start date – 01/07/2022
      • Period end date – 15/12/2022
      • The result is 168 days.
       
     
  • Number of days Paul was married with dependants and had private patient hospital cover just for himself:
    • Paul and Joanne were married with dependent children and were living together as a family from 15 December 2022 until 30 June 2023.
    • Paul doesn't use Joanne's income to compare to the threshold because he was a member of a family for only part of the year.
    • Paul must compare his own income for MLS purposes with the family surcharge threshold for their circumstances ($184,500).
    • Paul has to pay the surcharge for this period as:
      • his own income for MLS purposes was more than their family surcharge threshold of $184,500, and
      • all his dependants (Joanne and dependent children) did not have private patient hospital cover.
       
     

Paul enters 168 into myTax at Number of days you do not have to pay the surcharge.

End of example

Choose where to go next from the following:

  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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