Subtitle 1
The Medicare Levy Surcharge (MLS) is an extra charge you may pay if you earn over $93,000* as a single, or $186,000^ as a couple/family, and you don’t have a suitable level of private hospital cover. The MLS is designed to encourage Australians to take out private hospital cover to help reduce the demand on the public health care system.
If you earn more than the Medicare Levy Surcharge income thresholds, the only way to avoid the MLS is to take out suitable private hospital cover. Extras cover won’t help you avoid the MLS.
The good news is that the cost of hospital cover is often less than what you’d pay for the MLS, so you could actually save money by buying hospital cover.