Changes to Medicare Levy Surcharge thresholds

07 June 2010

What is the Medicare Levy Surcharge?

The Medicare Levy Surcharge is an extra 1% tax imposed on those who earn over the income thresholds but don't have hospital cover as part of their health insurance.

How has it changed?

Each year, the income thresholds are indexed by using indexation factors calculated for full time adult average weekly ordinary time earnings.

For the 2010-2011 income tax year, the Australian Taxation Office (ATO) has advised that the thresholds affecting Medicare Levy Surcharge are now:

• Singles surcharge threshold: $77,000
• Family surcharge threshold: $153,000 (increasing by $1,500 for each dependent child after the first)

For more information, see our article: All About the Medicare Levy Surcharge

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