Cheapest Hospital Cover to Avoid the MLS
What you need to know about finding the minimum qualifying policy that exempts you from the Medicare Levy Surcharge.
Updated: July 2025 · Based on ATO legislation
Minimum Requirements for MLS Exemption
- Hospital treatment cover (even with restrictions/exclusions)
- Registered Australian private health insurer
- Excess ≤ $750 for singles, ≤ $1,500 for families
- Cover held for the full financial year (pro-rated if not)
Indicative Pricing (2025–26)
| Cover Type | Price Range | Typical Cost |
|---|---|---|
| Singles — Basic Hospital | $1,000 – $1,800/yr | $1,400/yr |
| Couples — Basic Hospital | $2,200 – $3,400/yr | $2,800/yr |
| Family — Basic Hospital | $2,600 – $3,800/yr | $3,200/yr |
* Before PHI rebate. Actual cost depends on your age bracket and the insurer. Prices are indicative only.
When deciding whether cover is worth the cost, consider your full tax picture. You can calculate your take-home pay to see how MLS compares to your total income tax and Medicare Levy.