The Medicare Levy Surcharge was introduced by the Federal Government to encourage individuals to take out private health insurance, and to reduce the load on the public hospital system. The surcharge is applied to higher income earners that don't have a private health insurance policy.

The income threshold where the Medicare Levy Surcharge kicks in is over $90,000 for singles and over $180,000 for families. For families with children, the threshold increases by $1,500 for each child after the first. This surcharge is in addition to the standard 2.00% Medicare Levy paid by most Australian taxpayers.

All Queensland Country Health Fund hospital covers exempt you from the additional surcharge, meaning you’ll pay less tax.

The below table outlines the thresholds and applicable Medicare Levy Surcharges.

Singles Less than $90,000 $90,001 - $105,000 $105,001 - $140,000 $140,001 or more
Families Less than $180,000 $180,001 - $210,000 $210,001 - $280,000 $280,001 or more
All ages 0.00% 1.00% 1.25% 1.50%

More information about the Medicare Levy Surcharge can be found by visiting the Australian Taxation Office’s website, or by calling the ATO Helpline on 13 28 62.

For information on the income, including the calculation for this income known as income for Medicare Levy Surcharge purposes, please seek the advice of your tax agent, financial advisor or the Australian Tax Office.