Medicare Levy Surcharge Calculator Australia

What This MLS Calculator Covers

The Medicare Levy Surcharge, or MLS, is an extra levy for higher-income Australians who do not hold approved private hospital cover. It is separate from the standard Medicare Levy. This calculator is designed to answer the practical question most people actually have: based on my income tier and the number of days I was uncovered, roughly how much extra tax could I face?

The tool lets you choose the tax year because thresholds moved again for the period from 1 July 2026 to 30 June 2027. That matters. A person near the cut-off can fall into a different tier depending on which financial year applies. The family calculation also adjusts the threshold by AUD 1,500 for each child after the first, which is often missed in rough online examples.

Current Official Threshold Tables Built Into This Tool

For the financial year from 1 July 2025 to 30 June 2026, the built-in thresholds are AUD 101,000 / 202,000 for the zero-surcharge line, AUD 118,000 / 236,000 for the second tier line, and AUD 158,000 / 316,000 for the top tier line. For the financial year from 1 July 2026 to 30 June 2027, those lines move to AUD 105,000 / 210,000, AUD 123,000 / 246,000, and AUD 164,000 / 328,000. The surcharge rates remain 0%, 1%, 1.25%, and 1.5% across the tiers.

These values come from the current Australian Government private health insurance guidance and are structured so you can model both a full-year no-cover case and a part-year exemption case. That makes the tool useful for people who took out cover part way through the year, suspended a policy while travelling, or are checking whether a cover decision is cheaper than paying MLS.

What Income To Use

The input here is labelled income for MLS purposes because the surcharge is not always based on ordinary taxable income alone. Depending on your situation, reportable fringe benefits, reportable super contributions, and other adjustments can matter. If you have a straightforward salary and no unusual adjustments, the amount may be close to your taxable income. If your tax affairs are more complex, use the number that matches your MLS calculation basis rather than your gross salary.

Part-Year Cover and Family Rules

If you had approved hospital cover for only part of the financial year, you do not automatically pay the full surcharge. Instead, you generally have a partial exemption and pay based on the days you were uncovered. That is why the calculator includes uncovered days as a required input. It also matters that family tiers apply to couples and single parents, not just married couples. If one required family member is not covered, the surcharge can still apply.

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