Medicare Levy Surcharge
The Medicare Levy Surcharge tax is designed to encourage people to take out hospital insurance and seek medical attention at a private hospital, which in turn reduces the strain on the public health system.
The Australian Government applies an additional 1% Medicare Levy Surcharge in addition to the 1.5% Medicare Levy to people who don’t have private hospital cover and earn over a certain income threshold.
The Medicare Levy is used by the government to contribute towards the cost of the public health system, whilst the Medicare Levy Surcharge only applies to high income earners who don’t have hospital insurance and is calculated as a percentage of your income.
To find out if this surcharge would apply to you or for further information just contact an HBF Member Service Consultant on 133 423.