From 1 July 2013, your Medicare levy surcharge (MLS)  rate can either be 1%, 1.25% or 1.5%. Prior to this, the MLS rate was 1%.

Individuals and families on incomes above MLS thresholds, who do not have an appropriate level of private patient hospital cover, pay MLS for any period during the year that they did not have this cover.

The MLS rate is applied to:

  • your taxable income
  • your total reportable fringe benefits, and
  • any amount on which family trust distribution tax has been paid.

Unchanged Tier 1 Tier 2 Tier 3
Singles $0 – $84,000 $84,001 – $97,000 $97,001 – $130,000 Over $130,001
Families $0 – $168,000 $168,001 – $194,000 $194,001 – $260,000 Over $260,001
MLS rate 0% 1% 1.25% 1.5%