Lifetime Health Cover (LHC) loading is the Government's incentive to encourage Australians to take out private hospital cover before age 31. If you don't, every year you delay adds 2% to your premium when you eventually do take it out — capped at 70%.

The 1 July following your 31st birthday

Your "LHC base date" is 1 July after you turn 31. If you take out hospital cover before then, no loading. If you take it out one year later (at 32), you pay 2% extra. At 40 it's 18%. At 50 it's 38%. The maximum 70% loading kicks in at age 66.

The 10-year clock

Once you take out cover, the loading is fixed at that rate. After 10 continuous years of hospital cover, the loading drops off and your premium reverts to the base rate. You can switch funds during those 10 years — what matters is unbroken cover (with limited 1,094-day allowance for life events).

When the loading is worth paying

It's a real cost but rarely deal-breaking. An 18% loading on a $1,800 single hospital premium is $324/yr — about $6.20 a week. Compare that to the Medicare Levy Surcharge: above $97k single (2025–26), the MLS is 1% of taxable income ($970+/yr), and it scales up. Once you're paying MLS, hospital cover usually wins even with loading. See privatehealth.gov.au — Lifetime Health Cover for the full rules.

Edge cases the calculator doesn't model

Special rules apply for people who turned 31 before 1 July 2000 (you had until 15 July 2000 to take out cover), permanent migrants who arrive at age 31+ (you get a 12-month grace period), and people who held cover before but dropped it (the days you spent uninsured up to 1,094 don't count against you). For your specific situation, contact your fund or check privatehealth.gov.au.