Medicare Levy Surcharge

The Medicare Levy Surcharge (MLS) is levied on payers of Australian Tax who do not hold a hospital cover with a private health insurer and who earn above a certain income.

The surcharge aims to encourage individuals to take out private hospital cover, and where possible, use the private hospital system to reduce the demand on the public health care system.

People who don’t have hospital cover, and who have an income for MLS purposes in excess of the thresholds set down by the ATO pay a surcharge of between 1.0% to 1.5% of their income. This surcharge is in additional to the standard Medicare Levy of 2.0% of taxable income.

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