Medicare Levy Surcharge Guides
Plain-English guides to the Medicare Levy Surcharge, thresholds, and how to avoid paying more tax than you need to.
MLS Thresholds
Medicare Levy Surcharge Thresholds 2025-26
Current MLS income thresholds and surcharge rates for singles and families, how they're calculated, and when the surcharge applies.
Avoiding MLS
How to Avoid the Medicare Levy Surcharge
Practical strategies to avoid paying the MLS, including private health insurance options and income structuring.
Health Cover
Cheapest Hospital Cover to Avoid the MLS
How to find the cheapest private hospital cover that satisfies the MLS exemption and saves you money overall.
Health Cover
Lifetime Health Cover Loading: How Age Affects Your Premiums
How LHC loading works in Australia: 2% per year penalty for delaying hospital cover past 31, the 1,094 days of absence rule, 10-year removal, exemptions, and impact on the MLS break-even.
MLS Income
MLS Income Explained: What Counts Beyond Taxable Income
Income for MLS purposes includes more than taxable income. Learn how reportable fringe benefits, super contributions, and investment losses affect your MLS threshold — with worked examples for 2025-26.
MLS Income
Salary Sacrifice & MLS: Why It Doesn't Reduce Your Surcharge
Salary sacrifice into super does not reduce your Medicare Levy Surcharge. Learn why the ATO adds reportable super contributions back, with worked examples.
Understanding MLS
Medicare Levy vs Medicare Levy Surcharge: What's the Difference?
The Medicare Levy (2%) and Medicare Levy Surcharge (1%–1.5%) are separate charges with different rates, income tests, and exemptions. Learn who pays each, how they interact, and whether you owe one or both.
Health Cover
PHI Rebate Tiers 2025-26: How Your Income Affects Your Rebate
Full 3×4 rebate table by age and income tier for 2025-26. How to claim the rebate as a premium reduction or tax offset, worked examples, and how it interacts with the MLS.
Couples & Families
MLS for Couples & Families: Combined Income Rules
How the Medicare Levy Surcharge works for couples and families. Covers combined income rules, the $202,000 family threshold, dependent child adjustments, per-partner charging, single parents, and de facto couples.
Timing & Strategy
MLS Pro-Rata Rules: Getting Cover Part-Way Through the Year
How the Medicare Levy Surcharge is calculated day-by-day when you get private hospital cover partway through the financial year. Includes the ATO formula, worked examples, timing strategies, switching insurers, and waiting period rules.