Your Details
Stay completely exempt from MLS
Maximum Taxable Income to Stay in Tier 0 — No MLS
$101,000
Income Headroom
MLS threshold: $101,000
What-If Scenarios
See how your MLS changes at different income levels relative to the threshold.
| Scenario | Taxable Income | MLS Income | Tier | Annual MLS |
|---|---|---|---|---|
$20,200 below | $80,800 | $80,800 | Exempt | $0 |
$10,100 below | $90,900 | $90,900 | Exempt | $0 |
At threshold | $101,000 | $101,000 | Exempt | $0 |
$5,000 above | $106,000 | $106,000 | 1% | $1,060 |
$15,000 above | $116,000 | $116,000 | 1% | $1,160 |
$30,000 above | $131,000 | $131,000 | 1.25% | $1,638 |
How This Works
The MLS is calculated on your MLS income, which includes your taxable income plus reportable fringe benefits, reportable super contributions, and net investment losses.
This calculator works backwards from the MLS tier thresholds to find the maximum taxable income that keeps your total MLS income within the selected tier. If you have other MLS income components (super contributions, fringe benefits, or investment losses), these reduce the taxable income you can earn before crossing the threshold.
To avoid MLS entirely, you need qualifying private hospital cover or keep your MLS income below the single threshold of $101,000.
Frequently Asked Questions
- What does the reverse MLS threshold calculator do?
- Instead of entering your income to find your MLS tier, this calculator works backwards. You select the tier you want to stay within, and it calculates the maximum taxable income you can earn before crossing into a higher tier. It accounts for other MLS income components like reportable super contributions and fringe benefits.
- Why do super contributions and fringe benefits affect my MLS threshold?
- MLS is calculated on your 'MLS income', not just taxable income. MLS income includes taxable income plus reportable fringe benefits, reportable super contributions (including salary sacrifice), and net investment losses. These components reduce the taxable income you can earn before crossing an MLS threshold.
- How are family thresholds different from single thresholds?
- Family thresholds (for couples and families) are double the single thresholds. For families with more than one dependent child, the threshold increases by $1,500 for each additional child. For example, in 2025-26 the single Tier 0 threshold is $101,000, while the family threshold is $202,000 (plus $1,500 per additional child).
- Can I use salary sacrifice to reduce my MLS income?
- No. Salary sacrifice reduces your taxable income but increases your reportable super contributions by the same amount. Since both are included in MLS income, salary sacrifice has zero effect on your MLS liability. This calculator accounts for this by including reportable super contributions as an MLS income component.
- What is the easiest way to avoid paying MLS?
- The simplest way to avoid MLS is to hold qualifying private hospital cover for the full financial year. If your MLS income is below the threshold ($101,000 for singles or $202,000 for families in 2025-26), you are automatically exempt regardless of cover. Compare MLS cost versus hospital cover cost using our main MLS Calculator.
More MLS Tools
Main
MLS Calculator
Calculate your MLS liability and compare it against private hospital cover costs.
Family
Couple & Family Calculator
Enter both partners' incomes separately for a combined MLS assessment.
Myth-Buster
Salary Sacrifice Myth-Buster
Interactive proof that salary sacrifice does NOT reduce your MLS liability.
Disclaimer
This calculator provides estimates for educational purposes only and does not constitute financial or tax advice. MLS thresholds and rates are set by the Australian Government and may change. Consult a registered tax professional for advice specific to your circumstances.