AU Medicare Levy Surcharge Rebate Calculator
Australians earning above $97,000 single / $194,000 family pay Medicare Levy Surcharge (MLS) of 1-1.5% unless they have private hospital cover. The private health insurance rebate (PHIR) further adjusts premiums. Calculate both for 2026 FY.
Medicare Levy Surcharge Mechanics
MLS is an extra tax on high earners without private hospital insurance. 2026 thresholds: 1% above A$97K single (A$194K family), 1.25% above A$113K (A$226K), 1.5% above A$151K (A$302K). Private hospital cover (not extras-only) exempts you completely. The surcharge applies on Medicare Levy Income, which includes salary + reportable fringe benefits + employer super beyond mandatory.
Private Health Insurance Rebate
PHIR (introduced 2012) discounts your PHI premium based on income and age. 2026 rebate tiers: highest income earners (>A$151K single) get 0% rebate; under-threshold under-65 get 27.5%; 65-69 get 30.16%; 70+ get 32.81%. Rebate paid as premium reduction (most common) or tax refund.
LHC Loading Penalty
Lifetime Health Cover (LHC) loading: if you delay private hospital cover past 1 July after your 31st birthday, you pay 2% extra loading per year (max 70%). Drops off after 10 continuous years of cover. This permanent penalty is why most Australians buy PHI by age 31.
Source: ATO Medicare Levy Surcharge Guide 2026, PrivateHealth.gov.au rebate calculator, Department of Health LHC rules. Last updated: May 2026.