For the whole of 2021–22, 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 2021–22, 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 2022.

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 2021 to 30 June 2022?  
  • Richard and Elizabeth both took out private patient hospital cover during the year so they had cover for only some days in 2021–22.
  • 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 2022 to 30 June 2022.
• 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 – 03/03/2022
  • Period end date – 30/06/2022
  • 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 2021–22, 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 2022.

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 2021 to 30 June 2022?  
  • Jackie and all her dependants (John and 2 dependent children) had cover for only some days in 2021–22 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 2022 to 30 June 2022.

• 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 – 05/03/2022
  • Period end date – 30/06/2022
  • 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 2021–22, 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 2022.

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 2021 to 30 June 2022?  
  • 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 2022 to 30 June 2022.

• 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 – 01/03/2022
  • Period end date – 30/06/2022
  • 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 2021–22, 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 2022. 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 2022 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 2021 to 30 June 2022?  
  • 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 2021 to 1 February 2022.
  • 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 – 01/07/2021
    • Period end date – 01/02/2022
    • 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 2022 to 30 June 2022.
  • 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 – 15/4/2022
    • Period end date – 30/6/2022
    • 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.