Medicare Levy Surcharge
If your adjusted taxable income is greater than the applicable threshold and you don't have appropriate private health insurance for the full year then you will be liable for the medicare levy surcharge
2023 threshold = Single $90,000 & Family $180,000
2024 threshold = Single $93,000 & Family $186,000
2025 threshold = Single $97,000 & Family $194,000
You can avoid the surcharge if the whole family (including children) have appropriate private health insurance for the full year
Example:-
2024 Tax Year
Husband earns $80,000 & wife earns $120,000 ($200,000 combined adjusted taxable income)
Wife has Private Health Insurance appropriate hospital cover
Husband does not have cover
Both have to pay the medicare levy surcharge even though the wife has cover. Surcharge payable is:-
$80,000 x 1% = $800 husband
$120,000 x 1% = $1,200 wife
Option 1 = pay the $2,000 medicare levy surcharge
Option 2 = the whole family have private health insurance appropriate hospital cover for the whole year
The medicare levy surcharge starts at 1% multiplied by your adjusted taxable income and increases to 1.5% depending on your income