Income for Medicare Levy Surcharge

Income for surcharge purposes is used to work out if you have exceeded the Medicare levy surcharge threshold that applies to you. This is done to find out:

• if you are entitled to the private health insurance rebate

• if you do not hold an appropriate level of private health insurance, how much, if any, of the Medicare levy surcharge to pay.

Private health insurance rebate

To assess your private health insurance (PHI) rebate entitlement, generally your income for surcharge purposes is your:

• taxable income (your assessable income minus deductions)

• reportable fringe benefits amount, as reported on your payment summary

• total net investment loss (includes both net financial investment loss and net rental property loss)

• reportable super contributions (includes both reportable employer super contributions and deductible personal super contributions)

• the amount on which family trust distribution tax has been paid.

Medicare levy surcharge

You may have to pay Medicare levy surcharge (MLS) if you or your dependants (including your spouse, even if they had their own income) did not have an appropriate level of private patient hospital cover for the whole financial year and your income was above a certain amount.

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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.