Medicare Levy Surcharge

This is the additional charge that higher income earners’ who do not have private hospital insurance with a low excess are required to pay over and above the standard 1.5% Medicare levy. Individuals earning over $50,000 pa and couples/families earning over $100,000 pa (family includes one child and the income threshold will increase by $1500 for each additional child) must pay an additional 1% of their taxable income if they do not have private hospital insurance with a low excess. A low excess (or low front-end deductible) is defined as equal to or less than $500 pa for singles policies or $1000 pa for families/couples policies.

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