Tax & hospital cover

The Medicare Levy Surcharge (MLS) could be costing you extra in tax. ahm has hospital cover options that could help you save on the surcharge. Find out if the surcharge applies to you.

How much extra tax could you be paying?

The Medicare Levy Surcharge (MLS) is set by the Government and is designed to make health care more affordable to more Australians. But if you earn more than the relevant income threshold, and don’t have an appropriate level of private hospital cover, it could be costing you extra in tax.

Depending on your income over a full financial year, you might have to pay the MLS which can be an extra 1%, 1.25% or 1.5% of your income on top of your annual income tax. See table below to find your income threshold. Depending on your income over a full financial year, the MLS can be 1%, 1.25% or 1.5% on top of your annual income. Find out more at ato.gov.au.(opens in a new tab)

2024-2025 MLS Income thresholds (from 1 July 2024 onwards)
Singles
Couples, Families and single parents
Medicare Levy Surcharge
<$97,000
<$194,000*
0.0%
$97,001 - $113,000
$194,001 - $226,000
1.0%
$113,001 - $151,000
$226,001 - $302,000
1.25%
>$151,001
>$302,001
1.5%

*If you have two or more MLS dependant children, the threshold will increase by $1,500 for each MLS dependant child after your first child. Find out more at ato.gov.au.(opens in a new tab)

Use the calculator below to see how the MLS could affect you.

Please note the below calculations apply from 1 July 2024 onwards. If you’re unsure whether the MLS applies to you, you should speak to a financial advisor.

If you’re a

in

and earning

97k113k151k

Good news, looks like you might not have to pay the MLS!

This is a guide only. It is based on the income you have selected and assumes you have no dependants^. You should speak to a financial advisor who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

^ ‘Income’ and ‘dependants’ have special meanings for MLS purposes(opens in a new tab)

Having hospital cover is still a great idea.

Get started with…

Basic

starter basic

Just for accidents, just in case.

Basic plus

essentials basic plus

Basic hospital essentials with some handy services.

Bronze

starter bronze

Your bronze category cover starts here, with some important services.

*Price is for single cover in NSW paying weekly by direct debit. Price reduced by an Australian Government Rebate of 24.608% (based on an age of under 65 years old, single income of $97,000 or less per year). Hospital price includes an excess of $750, excludes any Youth Discount and excludes Lifetime Health Cover loading.

Also interested in extras cover?View hospital & extras cover

Other ways you could save with health insurance