MLS Calculator

Year-Over-Year MLS Comparison

See how your Medicare Levy Surcharge liability changed across financial years due to threshold indexation. Highlights the impact of the 2025-26 threshold increase.

ATO thresholds4 financial years compared

Understanding MLS Threshold Changes

The Medicare Levy Surcharge thresholds determine the income level at which you begin paying an additional 1%–1.5% tax if you don't hold private hospital cover. These thresholds have changed significantly over the past decade:

  • 2014-15 to 2022-23: Thresholds were frozen at $90,000 (singles) and $180,000 (families). As wages grew, more taxpayers were caught by the MLS — a phenomenon known as “bracket creep.”
  • 2023-24: A modest increase to $93,000 / $186,000, the first change in 9 years.
  • 2024-25: Thresholds remained at $93,000 / $186,000 (unchanged from 2023-24).
  • 2025-26: A significant jump to $101,000 / $202,000 — removing an estimated 800,000 taxpayers from MLS liability.

This calculator shows what the same income would have cost you in MLS across each of these periods, letting you see the real dollar impact of these threshold changes.

Frequently Asked Questions

What does the Year-Over-Year MLS Comparison show?+
It compares your MLS liability across multiple financial years using the same income. This lets you see how threshold changes — particularly the 2025-26 increase after nearly a decade of frozen thresholds — affect the surcharge you'd pay.
Why were MLS thresholds frozen for so long?+
MLS thresholds were set at $90,000 (singles) and $180,000 (families) from 2014-15 and remained unchanged through 2024-25. This was a policy decision that gradually brought more taxpayers into the MLS net as wages grew. The government finally increased thresholds for 2025-26 to $101,000 (singles) and $202,000 (families).
How much can the 2025-26 threshold increase save me?+
It depends on your income. Taxpayers earning between $93,001 and $101,000 (singles) may now be completely exempt from the MLS. Those in higher tiers may move to a lower tier or see no change if their income is well above the new thresholds.
Does this calculator account for income changes between years?+
No — it deliberately uses the same income across all years to isolate the effect of threshold changes. If your income also changed, your actual MLS in each year would differ from what's shown.
Do family thresholds change the same way?+
Yes. Family thresholds were doubled from the single threshold in each year (e.g. $186,000 in 2024-25, $202,000 in 2025-26). The child loading of $1,500 per dependent child after the first has remained constant across all years.

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Sources

Last updated: April 2026

Disclaimer

This calculator provides estimates based on published ATO thresholds and is intended for general information only. It does not constitute financial or tax advice. For advice specific to your situation, consult a registered tax agent or financial adviser. All calculations run in your browser — no data is stored or sent to any server.