Couple & Family MLS Calculator

Frequently Asked Questions

How is MLS calculated for couples and families?

The ATO uses your combined family income (both partners’ MLS incomes added together) to determine which MLS tier you fall into. However, the surcharge itself is applied to each partner’s individual taxable income at that tier’s rate. This means the total MLS is the sum of each partner’s individual surcharge, not a single charge on the combined income.

What is the family income threshold for MLS in 2026–27?

For the 2026–27 financial year, the family MLS threshold is $210,000. If your combined family MLS income is at or below this amount, no MLS is payable. The threshold increases by $1,500 for each dependent child after the first.

What counts as MLS income?

MLS income includes taxable income, reportable fringe benefits, reportable super contributions, and net investment losses (added back). This is calculated separately for each partner, then combined to determine the family’s tier.

What if one partner earns below the single threshold?

Even if one partner earns below the single threshold ($105,000 in 2026–27), MLS may still apply. The tier is determined by combined family income, and the surcharge is charged on each partner’s individual taxable income at that tier’s rate — including the lower-earning partner.

Do both partners need private hospital cover to avoid MLS?

Yes. To be exempt from MLS, the couple needs a qualifying private hospital insurance policy that covers both partners (and any dependent children). A singles-only policy for one partner will not exempt the family from MLS.

How do dependent children affect the MLS threshold?

The first dependent child is already factored into the family threshold of $210,000. Each additional dependent child after the first increases the threshold by $1,500. For example, a family with 3 children has a threshold of $213,000 ($210,000 + 2 × $1,500).