For the whole of 2020–21, you had a spouse

Example 4 – Had a spouse, combined income more than $180,000 (plus $1,500 for each dependent child after the first), not in a Medicare exemption category, taxpayer and spouse took out private patient hospital cover during the year.

For the whole of 2020–21, Richard and Elizabeth:

• were married
• had no dependent children
• had a combined income for MLS purposes more than the family surcharge threshold of $180,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out)
• were not in a Medicare levy exemption category.

Richard and Elizabeth both took out appropriate private patient hospital cover from 3 March 2021.

In myTax at the Medicare levy surcharge (MLS) heading:

• Richard answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2020 to 30 June 2021?  
  • Richard and Elizabeth both took out private patient hospital cover during the year so they had cover for only some days in 2020–21.
  • Richard answers No.
   
• as Richard and Elizabeth's combined income is more than the family surcharge threshold for their circumstances ($180,000), myTax shows:  
  • the ‘You may have to pay the Medicare levy surcharge’ alert message
  • the Number of days you do not have to pay the surcharge entry box.
   

Richard works out the number of days he doesn’t have to pay the surcharge.

• Richard doesn’t have to pay for the days they both had private patient hospital cover – from 3 March 2021 to 30 June 2021.
• To work out the number of days, he uses our Calculate days tool (you may prefer another calculation method) and enters the following:
  
  • Period start date – 03/03/2021
  • Period end date – 30/06/2021
  • The result is 120 days.
   

Richard enters 120 into myTax at Number of days you do not have to pay the surcharge.

Example 5 – Had a spouse, combined income more than $180,000 (plus $1,500 for each dependent child after the first), not in a Medicare exemption category, spouse added to private patient hospital cover during the year.

For the whole of 2020-21, Jackie and John:

• were married
• had 2 dependent children
• had a combined income more than the family surcharge threshold of $181,500 (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out).
• were not in a Medicare levy exemption category.

Jackie and the children had private patient hospital cover for the full income year. John was added to the policy from 5 March 2021.

In myTax at the Medicare levy surcharge (MLS) heading:

• Jackie answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2020 to 30 June 2021?  
  • Jackie and all her dependants (John and 2 dependent children) had cover for only some days in 2020–21 as John was added to the private patient hospital cover during the year.
  • Jackie answers No.
   
• as Jackie and John’s combined income is more than the family surcharge threshold for their circumstances ($181,500), myTax shows:
  
  • the ‘You may have to pay the Medicare levy surcharge’ alert message
  • the Number of days you do not have to pay the surcharge entry box.
   

Jackie works out the number of days she doesn’t have to pay the surcharge.

• Jackie doesn’t have to pay for the days Jackie, John and their dependent children had private patient hospital cover – from 5 March 2021 to 30 June 2021.
• To work out the number of days, she uses our Calculate days tool (you may prefer another calculation method) and enters the following:  
  • Period start date – 05/03/2021
  • Period end date – 30/06/2021
  • The result is 118 days.
   

Jackie enters 118 into myTax at Number of days you do not have to pay the surcharge.

Example 6 – Had a spouse, combined income more than $180,000 (plus $1,500 for each dependent child after the first), no private patient hospital cover during the year, in a Medicare exemption category.

For the whole of 2020–21, Vicky and David:

• were living together on a genuine domestic basis in a relationship as a couple
• had 3 dependent children
• had a combined income for MLS more than the family surcharge threshold of $183,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out).
• did not have any private patient hospital cover.

Vicky and all her dependants (David and dependent children) were in a Medicare levy exemption category from 1 March 2021.

In myTax at the Medicare levy surcharge (MLS) heading:

• Vicky answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2020 to 30 June 2021?  
  • Vicky and her dependants did not have any private patient hospital cover during the year.
  • Vicky answers No.
   

Vicky works out the number of days she doesn’t have to pay the surcharge.

• Vicky doesn’t have to pay for the days Vicky, David and their dependent children were in a Medicare levy exemption category – from 1 March 2021 to 30 June 2021.
• To work out the number of days, she uses our Calculate days tool (you may prefer another calculation method) and enters the following:  
  • Period start date – 01/03/2021
  • Period end date – 30/06/2021
  • The result is 122 days.
   

Vicky enters 122 into myTax at Number of days you do not have to pay the surcharge.

Example 7 – Had a spouse, combined income more than $180,000 (plus $1,500 for each dependent child after the first), cancelled their private patient hospital cover during the year, in a Medicare exemption category.

For the whole of 2020–21, Jack and Diane:

• were living together on a genuine domestic basis in a relationship as a couple
• had 1 dependent child
• had a combined income for MLS more than the family surcharge threshold of $180,000. (If you had a different number of dependent children see Your family MLS surcharge threshold – work it out).

Jack and all his dependants (Diane and dependent child) had private patient hospital cover until cancelling it on 1 February 2021. They did not have cover at any time during the year after that.

Jack and all his dependants were in a Medicare levy exemption category from 15 April 2021 to the end of the financial year.

In myTax at the Medicare levy surcharge (MLS) heading:

• Jack answers the question Were you and all your dependants covered by an appropriate level of private patient hospital cover from 1 July 2020 to 30 June 2021?  
  • Jack and all his dependants had cover for only some days as the private patient hospital cover was cancelled during the year.
  • Jack answers No.
   

Jack works out the number of days he doesn’t have to pay the surcharge.

• Number of days with private patient hospital cover  
  • Jack does not have to pay the surcharge for the days Jack, Diane and their dependent child had private patient hospital cover – from 1 July 2020 to 1 February 2021.
  • To work out the number of days, he uses our Calculate days tool (you may prefer another calculation method) and enters the following:  
    • Period start date – 01/07/2020
    • Period end date – 01/02/2021
    • The result is 216 days.
     
   
• Number of days in a Medicare levy exemption category  
  • Jack does not have to pay the surcharge for the days Jack, Diane and their dependent child were in a Medicare levy exemption category – from 15 April 2021 to 30 June 2021.
  • To work out the number of days, he uses our Calculate days tool again (you may prefer another calculation method) and enters the following:  
    • Period start date – 15/4/2021
    • Period end date – 30/6/2021
    • The result is 77 days.
     
   

Jack adds the number of days calculated for the two periods which is 216 + 77 = 293.

Jack enters the total of 293 into myTax at Number of days you do not have to pay the surcharge.