You may not need to pay the Medicare Levy Surcharge (MLS) if you fit into one of the following requirements:
- Your taxable income for MLS purposes is below the income threshold
- Your taxable income for MLS purposes is over the income threshold and you have approved domestic hospital insurance for you and all of your dependents. From 1 April 2019, the total yearly front-end deductible or excess on the policy can be no greater than $750 for singles and $1,500 for families/couples. Prior to 1 April 2019, the maximum deductible or excess was $500 for singles or $1,000 for families/couples
- You are normally exempt from the Medicare levy because you are a prescribed person and you do not have any dependents. Your income level is not considered in this case,
- You are a high-income earner who had already purchased a hospital insurance product with a total yearly front-end deductible or excess greater than $500 for singles or $1,000 for families/couples, on or before 24 May 2000. In this case you will continue to be exempt from the surcharge as long as you maintain continuous membership under the same hospital treatment policy.
Source: privatehealth.gov.au