The Medicare Levy Surcharge (MLS)
Under Australian Taxation Law, anyone who holds a Medicare Card or who is entitled to hold a Medicare Card, has to pay the 1.5% Medicare Levy.
If they do not have "appropriate" Private Health Insurance, they also have to pay the 1% Medicare Levy Surcharge (MLS), which is a surcharge levied by the Tax Department. This surcharge is applied to incomes over *$77,000 per annum (for a single person) and over $154,000 per annum (for a couple), where appropriate Private Health Insurance is not held for the duration of the financial year, and is payable after assessment of an individual's tax return at the end of each financial year.
For more information on whether you may be in the bracket to pay the MLS, access the Australian Health Industry Association (AHIA)
calculator
.You may also like to refer to the
Australian Taxation Office website.
Overseas Visitors Health Plans or Insurance Policies are not classified as "appropriate" Private Health Insurance for MLS exemption purposes. Even if you take out OVHC, it WILL NOT exempt you from the Medicare Levy Surcharge. You can join a basic level of hospital cover with nib (nib health funds limited) which will do this. (Please note that benefits payable on the basic level of hospital cover offered by nib are restricted and therefore do not meet the health insurance requirements of sponsorship.)
Information on how to avoid the MLS, can be obtained from nib health funds limited on 13 14 63. Or visit their website.
* Income thresholds for 2010/2011 financial year.
