The Medicare Levy Surcharge is an additional tax charged to people who earn more than the specified threshold and don’t have Private Hospital cover. All see-u hospital policies satisfy the Government criteria to avoid the surcharge (to avoid the tax, you only need Hospital cover, not Extras cover).

The Medicare Levy Surcharge will apply to you if you earn over $93,000 a year as a single, or $186,000 as a couple or family and don't have private hospital cover. The surcharge varies from 1% to 1.5% depending on your income. For families with more than one child, your family income threshold increases by $1,500 for each child after your first.

For more information, visit https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge