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  TAX - RATESPersonalMedicare Levy & SurchargeMedicare Levy Surcharge      Saturday, 29 February 2020  

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Medicare Levy Surcharge (MLS)


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Summary of Content on this Topic viewable by our subscribers
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  1. What is an appropriate level of private patient hospital cover?
  2. Thresholds 1 July 2014 to 30 June 2018
  3. Thresholds 1 July 2004 to 30 June 2014
  4. Exceptions to the rule
  5. Links to expert information on Medicare Levy Surcharge (MLS)

   
Thresholds - 1 July 2013 to 30 June 2014
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You will have to pay the surcharge on a prorata basis for any days during the year that you or any of your dependants did not have private patient hospital cover and you exceeded the thresholds below.

 NB! Even if one spouse has personal cover they are both still liable to pay the surcharge for any days when both of them and all of their dependants were not simultaneously covered.

Income for MLS purposes Single

Income for MLS purposes Couples

Surcharge

Rate

$88,000

<$176,000

0%

$88,001 - $102,000

$176,001- $204,000

1%

$102,001 - $136,000

$204,001 - $272,000

1.25%

>$136,000

>$272,000

1.5%


For the definition of Income for MLS purposes refer to the link below

For this purpose, a dependant (regardless of their income) includes:

  • your spouse
  • your children under 21 years old
  • your children who are 21 years old or older and under 25 years old who are full time students.

Dependants must have been Australian residents and you must have contributed to their maintenance.


   
Thresholds - 1 July 2012 to 30 June 2013
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Thresholds - 1 July 2004 to 30 June 2012
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You may have to pay the MLS if you or your dependants (including your spouse), did not have an appropriate level of private patient hospital cover for the whole tax year and your income for MLS purposes was above a certain amount.

NB! Even if one spouse has personal cover they are both still liable to pay the surcharge if any of their dependants are not covered.

For this purpose, a dependant (regardless of their income) includes:

your spouse

your children under 21 years old

your children who are 21 years old or older and under 25 years old who are full time students.

Dependants must have been Australian residents and you must have contributed to their maintenance.

Single person surcharge threshold (no dependents)

Year

Surcharge income threshold - no

dependent children

Surcharge Rate

2011/2012

$80,000

1%

2010/2011

$77,000

1%

2009/2010

$73,000

1%

             2008/2009 (note1)

$70,000

1%

2007/2008

$50,000

1%

2006/2007

$50,000

1%

2005/2006

$50,000

1%

2004/2005

$50,000

1%


Family surcharge threshold

> a member of a family and the combined taxable income for MLS purposes of you and your spouse (if you had one for the whole year) was above the relevant family surcharge threshold shown in the table below.

The threshold for a family depends on the number of dependent children as listed below:

Year

Surcharge income threshold for up to one

dependent child

Surcharge income threshold for each extra dependent child

Surcharge Rate

2011/2012

$160,000

$1,500

1%

2010/2011

$154,000

$1,500

1%

2009/2010

$146,000

$1,500

1%

2008/2009 (note 1)

$140,000

$1,500

1%

2007/2008

$100,000

$1,500

1%

2006/2007

$100,000

$1,500

1%

2005/2006

$100,000

$1,500

1%

2004/2005

$100,000

$1,500

1%


Note 1: Special conditions apply for 2008/2009 only, if the taxpayer started a policy for private hospital cover between 1 July 2008 and 1 January 2009, and has less than 365 days private hospital cover.  If the taxpayer had an appropriate level of private patient hospital cover during any part of the period 1 July 2008 to 31 December 2008 and also on 1 January 2009 the taxpayer is treated as having cover for the whole period 1 July 2008 to 31 December 2008.


   
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This page was last edited on 30 January 2019

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