Medicare Levy Surcharge

The Medicare Levy Surcharge is paid by high income earners (that’s singles who earn over $90,000 and families that earn over $180,000 in the 2020/21 financial year) who don’t have private hospital cover.

The surcharge is between 1% and 1.5% (depending on your household income) and is paid on top of the 2% Medicare Levy paid by most Australian tax payers.

Work out the surcharge you’ll have to pay if you don’t have hospital cover

 

Step 1: Income Threshold
(for 2020/21 financial year)

Medicare Levy Surcharge
(This will only apply if you don't have private hospital cover)
Base Tier

Single
$90,000 or less
Family*
$180,000 or less

0%
Tier 1

Single
$90,001 - 105,000
Family*
$180,001 - 210,000

1%
Tier 2

Single
$105,001 - 140,000
Family*
$210,001 - 280,000

1.25%
Tier 3

Single
$140,001 or more
Family*
$280,001 or more

1.5%

*If you're a family with children, the income threshold for each tier is increased by $1,500 for every child after your first.

Family includes couples and single parent families.