Love Knowing the Rules - Government Initiatives

Love Knowing the Rules - Government Initiatives


There are a few government rules that apply to health insurance and they can be confusing. If you’d like to chat about any of these, just give us a call on 1800 808 690.

Medicare Levy Surcharge

The Medicare Levy Surcharge applies to Australian taxpayers who don’t have private hospital cover and who earn above a certain income ($90,000 per year for singles and $180,000 for families in 2017/18). The surcharge aims to encourage people to take out private hospital cover, and use the private system wherever possible. The aim is to reduce the demand on the public system.

The surcharge is between 1% and 1.5%, depending on your household income level. It is on top of the Medicare Levy of 2%, which is paid by most Australian taxpayers. The Medicare Levy Surcharge is paid by people earning over the income threshold who don’t have private hospital insurance. The income threshold changes each financial year.

You don’t have to pay the surcharge if your household income is below the income threshold.

If you have any Peoplecare hospital cover, don’t worry! All our hospital covers exempt you from the Medicare Levy Surcharge.