Health or wealth?
How about both …

Winter is coming, and with it comes tax time. Maybe not the ideal moment to start thinking about private hospital cover, but what if we told you it could save you money if you earn over $90,000 as a single or $180,000 as a couple or family.

Now that we’ve got your attention, read on to find out more about the Medicare Levy Surcharge (MLS) and how it could affect you.

Lets start with:

What’s the Medicare Levy Surcharge (MLS)?

As Australian residents we all have the right to health care through Medicare, a system partly funded by taxpayers, many of whom pay a Medicare levy of 2% of their taxable income. Your Medicare levy is reduced if your taxable income is below a certain threshold, meaning that some people may not have to pay the levy at all.

However, if you don’t have appropriate hospital cover and your annual income* is over $90,000 as a single, or over $180,000 as a couple/family then you could also be hit with the MLS. The family income threshold is increased by $1,500 for each MLS dependent child after the first child.

This means, when tax time rolls around, that recent pay rise that just tipped you over $90,000 suddenly isn’t looking so flash. That’s because the MLS starts at 1% and, if your annual income* continues to increase, it can be up to 1.5%. Certainly enough to make your eyes water.

But, if your annual income* is over the above thresholds and you take out ahm hospital cover you can wave goodbye to the MLS and say hello to a healthy peace of mind and, potentially, save some money at the same time. Talk about a win-win.

* A small aside on what ‘income’ means from a Medicare Levy Surcharge perspective: Read more
The following calculator acts as a guide only. For a more detailed quote of what you might pay we recommend speaking to a financial advisor who will be able to take into account your income and personal situation.

But here are some ways to put your money to better use

Hospital only

  • All services as a result of an accident
  • Ambulance Services^
  • Rehabilitation
View white starter

Hospital only

Invest a little to get covered for more

All the inclusions of white starter plus the following.

  • Surgical removal of wisdom teeth in hospital
  • Removal of tonsils & adenoids
  • Joint investigations & reconstructions
View white lite

*Price is for Single cover in NSW paying by direct debit and includes an Australian Government Rebate of 25.934% with a 0% Lifetime Health Cover Loading. ^Tasmania and Queensland have State schemes that cover ambulance services for residents of those States.

I’m over 31 with no hospital cover. What’s this about Lifetime Health Cover Loading?

If you’ve just blown out the candles on your twenties, you’re probably feeling a little bit older and a little bit wiser. But did you know that if you don’t have hospital cover by 1 July following your 31st birthday, you’ll start to carry the Lifetime Health Cover Loading (LHC).

The LHC adds an extra 2% to the cost of your hospital cover premiums for every year over the age of 30 you don’t have private hospital cover (with a maximum loading cap of 70%). Once you have paid LHC loading on hospital cover for 10 continuous years, LHC is removed.

It’s a great reason to get covered now so you can avoid the financial sting later on.

Graph showing 0% LHC loading at 30 years old, 10% at 35, 40% at 50, and 70% at 65 years old

Don’t put it off, protect your health from today.

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