Medicare Levy Surcharge
If your taxable income is above the Medicare Levy Surcharge thresholds, and you do not have an appropriate
level of private hospital cover, you may have to pay the Medicare Levy Surcharge. This is an additional 1%
in tax (on top of the Medicare Levy we all have to pay).
The good news is that you can avoid the Medicare Levy Surcharge (and pay less tax) by joining an nib health
cover with a hospital excess of $500 or less for singles, and $1,000 or less for couples/families, per calendar year.
Note: if you took out hospital cover before 24 May 2000, you'll be exempt from the
surcharge regardless of the nib excess you selected, as long as you remain on your
current health cover and excess level.
If you suspend your policy for any period of time, you will not qualify for
this tax break and the Medicare Levy Surcharge will apply.
Want to know more?
- Visit the Department of Health and Ageing website at
health.gov.au
- Visit the Australian Taxation Office at ato.gov.au
If you're unsure whether your nib health cover meets Medicare Levy Surcharge requirements,
please contact us.
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