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  • Private health insurance

    You may have to pay the Medicare levy surcharge (MLS) if:

    • you suspended or stopped your private patient hospital cover for you or your family for any part of the year
    • your income for MLS purposes is above the MLS threshold – $90,000 for singles or $180,000 for families.

    We will work out whether you need to pay the MLS from the information you provide in your tax return and from information supplied to us by health insurance providers.

    If you (and your dependents, if you have them) were in an exemption category, then you don't have to pay the surcharge.

    Under current rules, the maximum age of dependants covered under a private health insurance (PHI) policy is 24 years old.

    The government has changed the Private Health Insurance Act 2007. Since these changes only passed into law on 29 June 2021, they should not affect how you complete the private health insurance details in your 2020–21 tax return.

    The changes

    • increase the maximum age for children to be covered as a dependent person under a family, single parent or dependent person-only private health insurance policy from under 25 years old to under 32 years old
    • allow children with a disability, regardless of their age and marital status, to be covered as a dependent person under a family, single parent or dependent person-only private health insurance policy.

    You should talk to your health insurer if you want to change your policy or add other dependants to your family policy.

    See also:

    Next step:

      Last modified: 14 Jul 2021QC 62802