AU 2028 Medicare Levy Surcharge
AU 2028-29 MLS: 1% above $97k single / $194k family. 1.25% $113k+/$226k+. 1.5% $151k+/$302k+. Avoid by holding hospital cover from Apr 1 each year.
| Income for MLS | — |
| MLS rate | — |
| AU 2028-29 MLS | — |
The Australian 2028-29 Medicare Levy Surcharge applies if you do not have approved private hospital cover AND your income exceeds the threshold. Rates: 1% above $97k single / $194k family; 1.25% above $113k/$226k; 1.5% above $151k/$302k. Most cheap hospital cover plans are cheaper than the MLS — claim it as savings.
Threshold Mechanics
'Income for MLS' = taxable income + reportable fringe benefits + reportable super contributions + total net investment losses + adjusted exempt foreign employment income. Higher than just taxable income. Many high earners hit MLS unexpectedly because of investment loss add-backs.
Hospital Cover Exemption
Any approved private hospital cover with excess ≤ $750 (single) / $1,500 (couple) exempts you from MLS for that day. Even cheapest 'basic' hospital plans qualify. Cost of cover usually $1,200-$2,500/year — vs $1,000-$5,000+ MLS for medium-high earners = always net positive.
Lifetime Health Cover Loading
If hospital cover NOT taken before 31st birthday (or July following), 2% loading per year above 30 added to premium for 10 years. Encourages early take-up. Removed after 10 continuous years of cover.
Last updated May 2026. Sources: ATO MLS.