What is the Medicare Levy Surcharge?

The Medicare Levy Surcharge is an extra tax paid by Australian taxpayers who do not have an appropriate level of private hospital cover and are considered by the Australian Government to be high income earners.

The Surcharge varies depending on your taxable income and is in addition to the Medicare Levy, which is paid by most Australians taxpayers.

Extras cover without an appropriate hospital cover will not provide an exemption to the Surcharge.

How to avoid the Medicare Levy Surcharge?

If you are considered a high income earner you can avoid the Surcharge by having one of Latrobe Health’s hospital covers*. Contact Latrobe Health for more information on the appropriate level of hospital cover.

The table below outlines the income thresholds and surcharges that apply from 1 July 2023.

Income threshold Base Tier Tier 1 Tier 2 Tier 3
Singles Up to $93,000 $93,001 – $108,000 $108,001 – $144,000 $144,001+
Families Up to $186,000 $186,001 – $216,000 $216,001 – $288,000 $288,001+
Medicare Surcharge 0.0% 1.0% 1.25% 1.5%

For more information on an appropriate level of hospital cover please contact us.

*For more information on income thresholds, Latrobe encourages members to visit health.gov.au or consult their tax/financial advisor. Alternatively, you can calculate your income by using the calculator at ato.gov.au. “Appropriate hospital cover” refers to hospital cover with a total excess payment in any one year not greater than $750 (singles) or $1500 couples/families. All of Latrobe’s hospital covers, except X5 and X7, qualify to avoid the Medicare Levy Surcharge. Extras cover without hospital cover does not qualify.