Question 1

What is the Medicare Levy Surcharge?

Accepted Answer

The MLS is an additional 1-1.5% tax on top of the 2% Medicare Levy, paid by Australians earning over $93,000 (single) who don't have private hospital cover. It's designed to encourage higher earners to take out private health insurance.

Question 2

Is private health insurance cheaper than the surcharge?

Accepted Answer

Often yes. Basic hospital cover can cost $100-150/month, while the MLS on a $120,000 salary is $1,200/year ($100/month). At higher incomes, the surcharge exceeds insurance costs significantly.

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