myTax 2024 Number of days you don't have to pay the MLS

Example 1: Single, no dependants, income more than $93,000, not in a Medicare exemption category, took out private patient hospital cover during the year.

For the whole of 2023–24, Jacinta:

• was single
• had no dependants
• had an income for MLS purposes more than the single surcharge threshold of $93,000
• was not in a Medicare exemption category.

Jacinta took out appropriate private patient hospital cover on 25 March 2024.

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

• Jacinta answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?      
  • Jacinta took out private patient hospital cover during the year so she had cover for only some days in 2023–24.
  • Jacinta answers No.
• as Jacinta's income for MLS purposes was more than the single surcharge threshold of $93,000, 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.

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

• Jacinta doesn’t have to pay for the days she had private patient hospital cover – from 25 March 2024 to 30 June 2024.
• 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 – 25/03/2024
  • Period end date – 30/06/2024
  • The result is 98 days.

Jacinta enters 98 into myTax at Number of days you do not have to pay the surcharge.

Example 2: Single, no dependants, income more than $93,000, no private patient hospital cover during the year, in a Medicare exemption category.

For the whole of 2023–24, Julie:

• was single
• had no dependants.
• had an income for MLS purposes more than the single surcharge threshold of $93,000
• did not have any private patient hospital cover.

Julie was in a Medicare levy exemption category from 1 March 2024.

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

• Julie answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?      
  • Julie did not have any private patient hospital cover during the year.
  • Julie answers No.
• as Julie's income for MLS purposes was more than the single surcharge threshold of $93,000, 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.

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

• Julie doesn’t have to pay for the days she was in a Medicare levy exemption category – from 1 March 2024 to 30 June 2024.
• 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 – 01/03/2024
  • Period end date – 30/06/2024
  • The result is 122 days.

Julie enters 122 into myTax at Number of days you do not have to pay the surcharge.

Example 3: Single, dependants, income more than $186,000 (plus $1,500 for each dependent child after the first), cancelled private patient hospital cover during the year, in a Medicare exemption category for part of the year

For the whole of 2023–24, Jess:

• was single
• had 1 dependent child, so is considered a member of a family for MLS purposes for the year
• had an income for MLS purposes more than the family surcharge threshold of $186,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out).

Jess had private patient hospital for herself and her dependant until cancelling it on 1 February 2024. She did not have cover at any time during the year after that.

Jess and her dependant were in a Medicare levy exemption category from 15 April 2024 to the end of the financial year.

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

• Jess answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?  
  • Jess cancelled private patient hospital cover during the year so only had cover for some days in 2023–24
  • Jess answers No 
• as Jess' income for MLS purposes was more than the family surcharge threshold for her circumstances ($186,000), 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.

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

• Number of days with private patient hospital cover:  
  • Jess does not have to pay the surcharge for the days she and her dependant had private patient hospital cover – from 1 July 2023 to 1 February 2024.
  • 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 – 01/07/2023
    • Period end date – 01/02/2024
    • The result is 216 days.
• Number of days in a Medicare levy exemption category:  
  • Jess does not have to pay the surcharge for the days she and her dependant were in a Medicare levy exemption category – from 15 April 2024 to 30 June 2024.
  • 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 – 15/04/2024
    • Period end date – 30/06/2024
    • The result is 77 days.

Jess adds the number of days calculated for the 2 periods which is 216 + 77 = 293.

Jess enters the total of 293 into myTax at Number of days you do not have to pay the surcharge.

Example 4: Had a spouse, combined income more than $186,000 (plus $1,500 for each dependent child after the first), not in a Medicare exemption category, taxpayer and spouse took out private patient hospital cover during the year.

For the whole of 2023–24, Richard and Elizabeth:

• were married
• had no dependent children
• had a combined income for MLS purposes more than the family surcharge threshold of $186,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out)
• were not in a Medicare levy exemption category.

Richard and Elizabeth both took out appropriate private patient hospital cover from 3 March 2024.

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

• Richard answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?      
  • Richard and Elizabeth both took out private patient hospital cover during the year so they had cover for only some days in 2023–24.
  • Richard answers No.
• as Richard and Elizabeth's combined income is more than the family surcharge threshold for their circumstances ($186,000), 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.

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

• Richard doesn’t have to pay for the days they both had private patient hospital cover – from 3 March 2024 to 30 June 2024.
• 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 – 03/03/2024
  • Period end date – 30/06/2024
  • The result is 120 days.

Richard enters 120 into myTax at Number of days you do not have to pay the surcharge.

Example 5: Had a spouse, combined income more than $186,000 (plus $1,500 for each dependent child after the first), not in a Medicare exemption category, spouse added to private patient hospital cover during the year.

For the whole of 2023–24, Jackie and John:

• were married
• had 2 dependent children
• had a combined income more than the family surcharge threshold of $187,500 (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out)
• were not in a Medicare levy exemption category.

Jackie and the children had private patient hospital cover for the full income year. John was added to the policy from 5 March 2024.

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

• Jackie answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?  
  • Jackie and all her dependants (John and 2 dependent children) had cover for only some days in 2023–24 as John was added to the private patient hospital cover during the year
  • Jackie answers No 
• as Jackie and John’s combined income is more than the family surcharge threshold for their circumstances ($187,500), 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.

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

Jackie doesn’t have to pay for the days Jackie, John and their dependent children had private patient hospital cover – from 5 March 2024 to 30 June 2024.

• 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 – 05/03/2024
  • Period end date – 30/06/2024
  • The result is 118 days.

Jackie enters 118 into myTax at Number of days you do not have to pay the surcharge.

Example 6: Had a spouse, combined income more than $186,000 (plus $1,500 for each dependent child after the first), no private patient hospital cover during the year, in a Medicare exemption category.

For the whole of 2023–24, Vicky and David:

• were living together on a genuine domestic basis in a relationship as a couple
• had 3 dependent children
• had a combined income for MLS more than the family surcharge threshold of $189,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out)
• did not have any private patient hospital cover.

Vicky and all her dependants (David and dependent children) were in a Medicare levy exemption category from 1 March 2024.

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

• Vicky answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?  
  • Vicky and her dependants did not have any private patient hospital cover during the year.
  • Vicky answers No.

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

Vicky doesn’t have to pay for the days Vicky, David and their dependent children were in a Medicare levy exemption category – from 1 March 2024 to 30 June 2024.

• 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 – 01/03/2024
  • Period end date – 30/06/2024
  • The result is 122 days.

Vicky enters 122 into myTax at Number of days you do not have to pay the surcharge.

Example 7: Had a spouse, combined income more than $186,000 (plus $1,500 for each dependent child after the first), cancelled their private patient hospital cover during the year, in a Medicare exemption category.

For the whole of 2023–24, Jack and Diane:

• were living together on a genuine domestic basis in a relationship as a couple
• had 1 dependent child
• had a combined income for MLS more than the family surcharge threshold of $186,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out).

Jack and all his dependants (Diane and dependent child) had private patient hospital cover until cancelling it on 1 February 2024. They did not have cover at any time during the year after that.

Jack and all his dependants were in a Medicare levy exemption category from 15 April 2024 to the end of the financial year.

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

• Jack answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2023 to 30 June 2024?  
  • Jack and all his dependants had cover for only some days as the private patient hospital cover was cancelled during the year.
  • Jack answers No.

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

• Number of days with private patient hospital cover:      
  • Jack does not have to pay the surcharge for the days Jack, Diane and their dependent child had private patient hospital cover – from 1 July 2023 to 1 February 2024.
  • 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 – 01/07/2023
    • Period end date – 01/02/2024
    • The result is 216 days.
• Number of days in a Medicare levy exemption category:  
  • Jack does not have to pay the surcharge for the days Jack, Diane and their dependent child were in a Medicare levy exemption category – from 15 April 2024 to 30 June 2024.
  • To work out the number of days, he uses our Calculate days tool again (you may prefer another calculation method) and enters the following:  
    • Period start date – 15/4/2024
    • Period end date – 30/6/2024
    • The result is 77 days.

Jack adds the number of days calculated for the 2 periods which is 216 + 77 = 293.

Jack enters the total of 293 into myTax at Number of days you do not have to pay the surcharge.

Example 8: Separated during the year, income between $93,001 and $186,000 (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 2023 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 2023–24, Brenda:

• had no dependent children
• had an income for MLS purposes  
  • more than the single surcharge threshold of $93,000 but
  • less that the family surcharge threshold of $186,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out.)
• 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 2023 to 30 June 2024?  
  • Brenda and her partner Eddie did not have any private patient hospital cover for any days in 2023–24.
  • 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 2023 until 12 October 2023.
  • 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 ($186,000).
  • 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 2023 to 12 October 2023.
  • 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 – 01/07/2023
    • Period end date – 12/10/2023
    • The result is 104 days.
• Number of days Brenda was single:  
  • Brenda was single for the period 13 October 2023 to 30 June 2024.
  • Brenda must compare her own income for MLS purposes with the single surcharge threshold of $93,000.
  • 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.

Example 9: Married during the year, income between $93,001 and $186,000, no private patient hospital cover, not in a Medicare exemption category

At the beginning of 2023–24, Will and Louisa were both single. They got married on 17 March 2024 and are still married on 30 June 2024. They did not live together as a couple on a genuine domestic basis before their marriage.

In 2023–24, Will:

• had no dependent children
• had an income for MLS purposes  
  • more than the single surcharge threshold of $93,000 but
  • less that the family surcharge threshold of $186,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out.)
• 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 2023 to 30 June 2024?  
  • Will and his partner Louisa did not have any private patient hospital cover for any days in 2023–24.
  • 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 2023 to 16 March 2024.
  • Will must compare his own income for MLS purposes with the single surcharge threshold of $93,000.
  • 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 2024 until 30 June 2024.
  • 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 ($186,000).
  • 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 2024 to 30 June 2024.
  • 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 – 17/03/2024
    • Period end date – 30/06/2024
    • The result is 106 days.

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

Example 10: Married during the year, income more than $186,000 (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 2023. 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 2023–24, Paul:

• had an income for MLS purposes more than the family surcharge threshold of $190,500. (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 2023 to 30 June 2024?
• Paul had private patient hospital cover, but his dependants did not have cover for the any of 2023–24.  
  • 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 2023 to 15 December 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 – 01/07/2023
    • Period end date – 15/12/2023
    • 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 2023 until 30 June 2024.
  • 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 ($190,500).
  • Paul has to pay the surcharge for this period as:  
    • his own income for MLS purposes was more than their family surcharge threshold of $190,500, 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.

Example: Work out your family MLS surcharge threshold when the number of dependent children in the family is seven (7).

• 7 – 1 = 6
• 6 x $1,500 = $9,000
• The base family MLS surcharge threshold = $186,000
• $9,000 + $186,000 = $195,000

Example: Overlap

An example is where you and your dependants (if applicable):

• had private patient hospital cover from the start of the year until cancelling it on 1 February 2024, and
• were in a Medicare levy exemption category from 15 January 2024 to the end of the financial year.
• When calculating the number of days, you would double-count some days if you included the overlapping period – 15 January to 1 February 2024.

Where there is an overlap, you work out the number of days you don’t have to pay the surcharge as follows:

• Number of days with private patient hospital cover:  
  • You do not have to pay the surcharge for the days that you and all your dependants (if applicable) had private patient hospital cover – from 1 July 2023 to 1 February 2024.
  • To work out the number of days, you use our Calculate days tool (you may prefer another calculation method) and enters the following:  
    • Period start date – 01/07/2023
    • Period end date – 01/02/2024
    • The result is 216 days.
• Number of days in a Medicare levy exemption category:  
  • You do not have to pay the surcharge for the days that you and all your dependants (if applicable) were in a Medicare levy exemption category excluding the days you also had private patient hospital cover (counted above) – from 2 February 2024 to 30 June 2024.
  • To work out the number of days, you use our Calculate days tool (you may prefer another calculation method) and enters the following:  
    • Period start date – 02/02/2024
    • Period end date – 30/06/2024
    • The result is 150 days.

Add the number of days calculated for the 2 periods which is 216 + 150 = 366.

You would enter the total of 366 into myTax at Number of days you do not have to pay the surcharge.