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

Last updated 6 February 2022

Use this if you had a spouse for the whole income year, either with or without dependent children. If this is not you, return to Work out the number of days.

Note: Your dependants include a spouse and any dependent children.

Follow the steps below to work out the number of days you do not have to pay the surcharge.

Step 1

Was your own income for MLS purposes $23,226 or less?

Yes – you will not have to pay the Medicare levy surcharge for all of 2020–21.
Enter 365 at Number of days that you do not have to pay the surcharge. Go to Completing this section (step 4).

No – go to step 2.

Step 2

Was you and your spouse's combined family income for MLS purposes $180,000 or less (plus $1,500 for each dependent child after the first)?
(As you have dependants, the family surcharge threshold applies.)

Yes – myTax will advise that you do not have to pay the Medicare levy surcharge. Go to Completing this section (step 4).
Note: If your income includes Superannuation lump sum taxed elements with a zero rate, enter 365 into myTax at Number of days that you do not have to pay the surcharge. Go to Completing this section (step 4).

No – go to step 3.

Step 3

For any days in 2020–21, did you and all your dependants have an appropriate level of private patient hospital cover?
This might apply if you and all your dependants (if any) had cover for only some days in 2020–21 because part way through the year:

  • you took out or cancelled private health insurance
  • dependants were added or removed from the policy.

Note: If you and all your dependants had cover for all days in 2020–21, go to Completing this section (step 1) answer 'Yes' and follow the instructions.

Yes – go to step 4.
No – go to step 5.

Step 4

Work out the number of days when you and all your dependants had an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 7.

When working out the number of days:

  • You can use our Calculate days tool
  • The start date can't be before 1/7/2020
  • The end date can't be after 30/6/2021.

Go to step 5.

Step 5

For any days in 2020–21, were you and all your dependants in a Medicare levy exemption category?

Yes – go to step 6.
No – go to step 7.

Step 6

Work out the number of days when you and all your dependants:

  • were in a Medicare levy exemption category
  • did not also have an appropriate level of private patient hospital cover.

Retain the number as you will need it for step 7.

When working out the number of days:

  • You can use our Calculate days tool
  • The start date can't be before 1/7/2020
  • The end date can't be after 30/6/2021.

Go to step 7.

Step 7

You don't have to pay the Medicare levy surcharge for any days in 2020–21 that you and all your dependants (if any):

  • had an appropriate level of private patient hospital cover (Step 4), or
  • were in a Medicare levy exemption category only (Step 6).

Add together the total the number of days calculated at Step 4 and Step 6. Enter the number at Number of days you do not have to pay the surcharge.

If the total number of days calculated is:

  • more than 365, check your calculations, as any overlapping days are only counted once. See Overlap of days.
  • 0 (zero), enter 0 as the entry box can't be blank.

Go to Completing this section (step 4).

Examples – working out the number of days

Use the following examples to help you work out the number of days you do not have to pay the surcharge.

  • 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.
  • 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.
  • 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.
  • 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.

Next steps

  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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.

End of example

Next steps

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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.

End of example

Next steps

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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.

End of example

Next steps

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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.

End of example

If there is an overlap of days when you don't need to pay the surcharge, you only count the days once. See Overlap of days.

Where to go next

  • To see more examples, go to Examples.
  • To continue to work out and enter the Number of days you do not have to pay the surcharge, go to the steps.
  • If you have entered into myTax the Number of days you do not have to pay the surcharge, go to Completing this section (step 4).

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