Australian taxpayers who earn above a certain income threshold and do not have adequate private health insurance are required to pay the Medicare Levy Surcharge
| MLS income thresholds and rates for 2024–25 | ||||
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single threshold | $97,000 or less | $97,001 – $113,000 | $113,001 – $151,000 | $151,001 or more |
| Family threshold | $194,000 or less | $194,001 – $226,000 | $226,001 – $302,000 | $302,001 or more |
| Medicare levy surcharge | 0% | 1% | 1.25% | 1.5% |
| MLS income thresholds and rates for 2023–24 | ||||
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single threshold | $93,000 or less | $93,001 – $108,000 | $108,001 – $144,000 | $144,001 or more |
| Family threshold | $186,000 or less | $186,001 – $216,000 | $216,001 – $288,000 | $288,001 or more |
| Medicare levy surcharge | 0% | 1% | 1.25% | 1.5% |
Your income for MLS purposes is the sum of the following items for you (and your spouse, if you have one):
- Taxable income
- Reportable fringe benefits
- Total net investment losses, which include:
- Net financial investment losses
- Net rental property losses
- Reportable super contributions, which include:
- Reportable employer super contributions (RESC) as shown in your PAYG Payment Summary
- Deductible personal super contributions
Additionally:
- If you have a spouse, their share of the net income from a trust on which the trustee is required to pay tax (under section 98 of the Income Tax Assessment Act 1936) and which has not been included in their taxable income.
Your MLS income is calculated by combining your taxable income with all the figures mentioned above.
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