HIF is a registered health insurer, all our levels of domestic hospital cover are tax compliant and will therefore exempt you from incurring the Medicare Levy Surcharge (MLS) at tax time. However, the following types of health insurance do not provide an exemption:
- Extras cover without Hospital cover;
- Overseas Visitors Health Cover or;
- Cover held with non-registered insurers, such as international insurers.
Does my overseas cover exempt me from the Medicare Levy Surcharge?
For information on how the Medicare Levy Surcharge applies to you, please visit Overseas visitors | Australian Taxation Office (ato.gov.au) or contact your accountant.
Medicare levy exemption
You may be exempt from paying the Medicare levy if you:
- meet certain medical requirements
- are a foreign resident
- are not entitled to Medicare benefits.
For more information, please visit Medicare levy exemption | Australian Taxation Office (ato.gov.au).
From 1 July 2024 the Adjusted Taxable Income thresholds are:
| POLICY TYPE | ADJUSTED TAXABLE INCOME |
|---|
SINGLE
COUPLE/FAMILY | $97,000 or less
$194,000 or less | $97,001 - 113,000
$194,001 - 226,000 | $113,001 - 151,000
$226,001 - 302,000 | $151,001 or more
$302,001 or more |
| APPLICABLE MLS | 0% | 1.0% | 1.25% | 1.5% |
Important. please note:
- The thresholds may increase annually based on growth in Average Weekly Ordinary Time Earnings. Single parents & couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
- Non-domestic temporary residents can only purchase domestic products for tax saving purposes.
- Non-domestic temporary residents are not able to claim on services covered on domestic hospital products.
- Make sure you get in touch when and if you become eligible for Medicare so we can ensure you’re on the appropriate cover.