MLS is levied on payers of Australian tax who do not have private hospital cover

Most Australians pay a Medicare levy of 2% of their taxable income which is used to give Australians access to health care. However, there are certain categories of tax payers, who have a reduced medicare levy, or a complete exemption from the Medicare levy.


Check the page which explains how online tax return lodgements work, and follow the steps to lodge your tax online now.

Low income earners who earn below a certain threshold are exempt from the medicare levy.

A full Medicare levy is given to tax payers and their spouse or dependents, to whom one of the following conditions applies:
– They are a blind pensioner
– They received Sickness allowance from Centrelink
income levy surcharge threshold rates – Were entitled to free medical treatment for all conditions under Defence Force arrangements or Veteran’s Affairs repatriation Health Card (Gold Cards or repatriation arrangements)
– Any tax payer who was a foreign or Norfolk island resident for the full year can claim a full exemption from the Medicare levy
– If you were a foreign resident or Norfolk Island resident for the part of year can claim an exemption for that period.


The Medicare Levy Surcharge

The medicare levy surcharge is designed to reduce the demand on the public hospital system. You will be required to pay the surcharge if your income exceeds a certain threshold, and you do not have the appropriate level of Private Health Cover.
The current base threshold for the Medicare levy surcharge is $90,000 per year for singles, and $180,000 per year per family. The level of health cover required varies depending on your employment and family situation.


Visit our How It Works page and follow the steps to lodge your tax online now.

This Audio File Explains How The Medicare Levy Surcharge Is Applied For Australian Citizens