What is the medicare levy surcharge?
The Medicare Levy Surcharge (MLS) is an extra 1-1.5% tax incurred by those who earn over a certain threshold and do not have eligible private hospital cover. The MLS is applied on top of the 2% Medicare Levy that most Australians pay as part of their taxes. (Certain low income earners and other tax payers are exempt from the MLS.)
How can I avoid paying the medicare levy surcharge?
To avoid paying the extra MLS tax:
- Take out hospital cover that suits your lifestyle and budget.
- Find a cheap hospital cover that costs less than the MLS, so you can save money and still have modest cover
To be exempt from the MLS, you may not choose an excess payment greater than $500 for singles or $1,000 for couples and families
This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.
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