Medicare Levy Surcharge 2027
AU MLS 2027: 1.0% if single income > $97K, 1.25% > $113K, 1.5% > $151K. Couples: $194K threshold. Avoid by having basic hospital cover.
| Annual income for MLS | — |
| Status | — |
| Tier 1 threshold | — |
| Tier 2 threshold | — |
| Tier 3 threshold | — |
| MLS rate | — |
| MLS owed annually | — |
| Approx hospital cover cost | — |
The Medicare Levy Surcharge (MLS) is an additional 1%-1.5% tax on higher-income Australians without private hospital cover. Forces high earners to either pay extra tax OR take out private hospital cover (preferred — actual benefit).
MLS Tiers 2027
Single: Tier 1 ($97 000-$113 000) = 1%. Tier 2 ($113 001-$151 000) = 1.25%. Tier 3 ($151 001+) = 1.5%. Family: thresholds approximately double (e.g., $194 000-$226 000-$302 000 — exact 2027 TBD).
Avoid MLS: Buy Hospital Cover
Basic hospital cover starting from ~$1 500/year. MLS for high earner $151K+ = $2 265/year MINIMUM. Almost universally better to buy actual cover. Plus government rebate (~33% for under-65s) reduces premium further.
Income Definition for MLS
Includes: taxable income + reportable fringe benefits + reportable super contributions + total net investment loss. Higher than standard taxable income. Use SuperGuide MLS calculator to verify specific income mix.
Last updated May 2026. Sources: ATO MLS.