Use this if you were single for the whole income year, either with or without dependent children. If this is not you, return to Work out the number of days.
Follow the steps below to work out the number of days you do not have to pay the surcharge.
Did you have dependent children for any days in 2020–21?
Yes – with dependent children for all of 2020–21, go to step 2
Yes – with dependent children for only some days in 2020–21, see Your family circumstances changed during the year.
No – go to step 3.
Step 2
Was your family income for MLS purposes $180,000 or less (plus $1,500 for each dependent child after the first)?
(As you have dependent children, the family surcharge threshold applies.)
Yes – myTax will advise that you don't have to pay the MLS. Go to Completing this section (step 4).
Note: If your income includes superannuation lump sum taxed elements with a zero rate, 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 4.
Step 3
Was your income for MLS purposes $90,000 or less?
(As you do not have dependent children, the single 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 4.
Step 4
For any days in 2020–21, did you and all your dependants (if any) 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 (if any) 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 5.
No – go to step 6.
Step 5
Work out the number of days when you and all your dependants (if any) had an appropriate level of private patient hospital cover.
Retain the number as you will need it for step 8.
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 6.
Step 6
For any days in 2020–21, were you and all your dependants (if any) in a Medicare levy exemption category?
Yes – go to step 7.
No – go to step 8.
Step 7
Work out the number of days when you and all your dependants (if any) were both:
- 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 8.
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 8.
Step 8
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 5), or
- were in a Medicare levy exemption category only (Step 7).
Add together the total the number of days calculated at Step 5 and Step 7. 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 1 – Single, no dependants, income more than $90,000, not in a Medicare exemption category, took out private patient hospital cover during the year.
- Example 2 – Single, no dependants, income more than $90,000, no private patient hospital cover during the year, in a Medicare exemption category.
- Example 3 – Single, dependants, income more than $180,000 (plus $1,500 for each dependent child after the first), cancelled private patient hospital cover during the year, in a Medicare exemption category for part of the year.
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 1 – Single, no dependants, income more than $90,000, not in a Medicare exemption category, took out private patient hospital cover during the year.
For the whole of 2020–21, Jacinta:
- was single
- had no dependants
- had an income for MLS purposes more than the single surcharge threshold of $90,000
- was not in a Medicare exemption category.
Jacinta took out appropriate private patient hospital cover on 25 March 2021.
In myTax at the Medicare levy surcharge (MLS) heading:
- Jacinta 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?
- Jacinta took out private patient hospital cover during the year so she had cover for only some days in 2020–21.
- Jacinta answers No.
- as Jacinta's income for MLS purposes was more than the single surcharge threshold of $90,000, 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.
Jacinta works out the number of days she doesn’t have to pay the surcharge.
- Jacinta doesn’t have to pay for the days she had private patient hospital cover – from 25 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 – 25/03/2021
- Period end date – 30/06/2021
- The result is 98 days.
Jacinta enters 98 into myTax at Number of days you do not have to pay the surcharge.
End of exampleNext 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 2 – Single, no dependants, income more than $90,000, no private patient hospital cover during the year, in a Medicare exemption category.
For the whole of 2020–21, Julie:
- was single
- had no dependants.
- had an income for MLS purposes more than the single surcharge threshold of $90,000
- did not have any private patient hospital cover.
Julie was in a Medicare levy exemption category from 1 March 2021.
In myTax at the Medicare levy surcharge (MLS) heading:
- Julie 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?
- Julie did not have any private patient hospital cover during the year.
- Julie answers No.
- as Julie's income for MLS purposes was more than the single surcharge threshold of $90,000, 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.
Julie works out the number of days she doesn’t have to pay the surcharge.
- Julie doesn’t have to pay for the days she was 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.
Julie enters 122 into myTax at Number of days you do not have to pay the surcharge.
End of exampleNext 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 3 – Single, dependants, income more than $180,000 (plus $1,500 for each dependent child after the first), cancelled private patient hospital cover during the year, in a Medicare exemption category for part of the year
For the whole of 2020–21, Jess
- was single
- had 1 dependent child, so is considered a member of a family for MLS purposes for the year.
- had an 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).
Jess had private patient hospital for herself and her dependant until cancelling it on 1 February 2021. She did not have cover at any time during the year after that.
Jess and her dependant 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:
- Jess 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?
- Jess cancelled private patient hospital cover during the year so only had cover for some days in 2020–21.
- Jess answers No.
- as Jess' income for MLS purposes was more than the family surcharge threshold for her 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.
Jess works out the number of days she doesn’t have to pay the surcharge.
- Number of days with private patient hospital cover
- Jess does not have to pay the surcharge for the days she and her dependant had private patient hospital cover – from 1 July 2020 to 1 February 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 – 01/07/2020
- Period end date – 01/02/2021
- The result is 216 days.
- Number of days in a Medicare levy exemption category
- Jess does not have to pay the surcharge for the days she and her dependant were in a Medicare levy exemption category – from 15 April 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 – 15/04/2021
- Period end date – 30/06/2021
- The result is 77 days.
Jess adds the number of days calculated for the two periods which is 216 + 77 = 293.
Jess enters the total of 293 into myTax at Number of days you do not have to pay the surcharge.
End of exampleIf 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.
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).