The Medicare levy surcharge is income tested against the following income tier thresholds:
|
Threshold |
Tier 1 |
Tier 2 |
Tier 3 |
|---|---|---|---|---|
Singles |
$90,000 or less |
$90,001–$105,000 |
$105,001–$140,000 |
$140,001 or more |
Families (see note) |
$180,000 or less |
$180,001–$210,000 |
$210,001–$280,000 |
$280,001 or more |
Rates |
0.0% |
1.0% |
1.25% |
1.5% |
Note: The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child.
Which income threshold do you use if, during the year, you had a new spouse or separated from your spouse, or you became or ceased to be a sole parent?
If you had a new spouse or you separated from your spouse, or you became or ceased to be a sole parent, both the single and the family surcharge thresholds may apply to you for different periods.
You need to work out whether you were liable for MLS for any period during 2017–18 that you:
- were single (that is, you had no spouse or dependent children) so you can apply the single surcharge threshold of $90,000 to your income for MLS purposes
- had a spouse or any dependent children, so you can apply the family surcharge threshold of $180,000, plus $1,500 for each dependent child after the first, to your income for MLS purposes.
If your spouse died during 2017–18 and you did not have another spouse before the end of the year, you are treated as if you had a spouse for the remainder of 2017–18 and you apply the family surcharge threshold of $180,000, plus $1,500 for each dependent child after the first.
If your income for MLS purposes (or if you have a spouse, your combined income for MLS purposes) was above the relevant surcharge threshold that applies to you, and you and all of your dependents (including your spouse, if any) did not have an appropriate level of private patient hospital cover, or were not in a Medicare levy exemption category for the whole year, then you may be liable for MLS.
Your spouse shows a lump sum payment in arrears.
If you are liable for MLS only because your spouse has shown a lump sum payment in arrears in Foreign income or Other income section on their tax return, you may be entitled to a tax offset up to the amount of MLS you have to pay. We will calculate the tax offset for you.
At Spouse details in the Spouse section, you will need to:
- answer Yes to the question Did your spouse receive a lump sum payment in arrears during the 2017-18 and is your combined income for Medicare levy surcharge purposes over $180,000 (plus $1,500 for each dependent child after the first)?
- enter your spouse's address.