LHC Loading Estimator
Calculate your Lifetime Health Cover loading based on your age and cover history, and see how it changes the MLS breakeven — for FY 2025-26 and FY 2024-25.
Your Details
Had hospital cover continuously since July 1 after turning 31
Using indicative cost: $1,400/yr for single cover
LHC loading of 18% applies
Based on 9 years without cover since your LHC base day, a 18% loading will be added to your hospital cover premium. This can be removed after 10 continuous years of cover.
Your LHC Loading
2% per year without cover after age 31, capped at 70%
Base Premium
$1,400
Per year, no loading
Premium with Loading
$1,652
+18% loading
Annual Loading Cost
$252
$1/day
Years Without Cover
9
Since LHC base day (age 31)
Years to Remove Loading
10 yrs
Continuous cover required
Total Loading Cost
$2,520
Over 10 years
MLS vs Cover (with Loading)
Pay the MLS
$1,500
Per year, no cover
Buy cover (with loading)
$1,652
Per year, includes 18% loading
Cover with loading costs more than the MLS
At $1,652/yr (including 18% loading), cover is $152/yr more expensive than the $1,500 MLS. However, buying cover now starts the 10-year clock to remove loading — and you get hospital cover benefits.
Premium Breakdown
| Component | Annual | Monthly | Weekly |
|---|---|---|---|
| Base premium | $1,400 | $117 | $27 |
| LHC loading (+18%) | +$252 | +$21 | +$5 |
| Total premium | $1,652 | $138 | $32 |
How LHC loading works
- Loading accrues at 2% per year without cover after age 31, up to a maximum of 70%.
- Once you take out and maintain hospital cover for 10 continuous years, the loading is permanently removed.
- If your cover lapses for more than 1,094 days (roughly 3 years), the 10-year clock resets and your loading may increase.
- Some exemptions apply — e.g. new migrants get a grace period, and certain life events may pause the loading clock.
Frequently Asked Questions
What is Lifetime Health Cover (LHC) loading?
LHC loading is an extra amount you pay on top of your hospital cover premium if you don't take out and maintain private hospital cover from the year you turn 31. The loading is 2% of the base premium for every year you're aged over 30 without cover, up to a maximum of 70%.
When does LHC loading start accruing?
LHC loading starts accruing from your 'LHC base day', which is 1 July following your 31st birthday. For example, if you turned 31 on 15 March 2020, your LHC base day would be 1 July 2020. Every year after that date without hospital cover adds 2% loading.
How much is LHC loading?
The loading is 2% of your hospital cover premium for each year you're over 30 without cover. For example, if you're 45 and have never held cover, you'd have a 28% loading (14 years x 2%). The maximum loading is 70%, which applies if you've been without cover for 35+ years after turning 31.
Can LHC loading be removed?
Yes. Once you take out private hospital cover and maintain it continuously for 10 years, the LHC loading is permanently removed from your premium. If your cover lapses for more than 1,094 days (approximately 3 years), the 10-year clock may reset.
Does LHC loading affect the MLS breakeven calculation?
Yes, significantly. LHC loading increases the cost of hospital cover, which can change whether it's cheaper to buy cover or simply pay the Medicare Levy Surcharge. For someone with high loading, paying the MLS might actually be more cost-effective — this calculator shows you that comparison.
Are there exemptions from LHC loading?
Yes. Key exemptions include: new migrants (who get a grace period after registering for Medicare), people who held continuous cover since before 1 July 2000, and Norfolk Island residents who arrived before 1 July 2016. Certain permitted gaps in cover (up to 1,094 days total) don't count as years without cover.
Does LHC loading apply to extras cover?
No. LHC loading only applies to private hospital cover (or the hospital component of a combined policy). It does not apply to general treatment (extras) cover.
What happens if I let my cover lapse?
You're allowed a total gap in cover of up to 1,094 days (about 3 years) throughout your lifetime without it affecting your LHC loading. After that, your loading may increase and the 10-year removal clock may reset. Days without cover before your LHC base day don't count.
Related Calculators
Core
MLS Calculator
Calculate your Medicare Levy Surcharge liability and compare it against hospital cover costs.
Partial Year
Partial-Year Coverage
Calculate pro-rated MLS for partial years — see how much you'd save by getting cover mid-year.
Optimizer
MLS Avoidance Optimizer
Compare strategies — pay the MLS, buy cover, or restructure income — and find the cheapest path.
Threshold
Reverse Threshold Calculator
Find the maximum income before hitting a specific MLS tier.
Sources: Private Health — Lifetime Health Cover | ATO — Medicare Levy Surcharge. Calculations are estimates only. Actual premiums and loading may differ by insurer. Not financial advice.