When is medicare levy payable

So, if you get near the end of the financial year and you don't have health cover, it's already too late to totally avoid the surcharge this year. You will get a tax saving through avoiding the surcharge but only for the days between taking out the cover and the end of the financial year which could be minimal if you leave it until the end of the year.

You will, of course, get a full tax benefit in the next financial year. If you don't have cover yet, take it out as soon as possible in the tax year. Phone Appointments available. Find an office to book your appointment. What is the Medicare Levy Surcharge? Who is liable to pay the surcharge? How is the Medicare Levy Surcharge calculated?

How to avoid the Medicare Levy Surcharge In order to avoid the surcharge, you must have the appropriate level of cover. Tax Tip: health cover extras Beware health funds that try to sell you health cover plus extras to avoid the surcharge. Tax Tip: avoiding the surcharge Don't be fooled by marketing material advising you take out health cover before 30 June to avoid the surcharge.

August How-to Tax Laws. Share with your friends. Share to Facebook Share to Linkedin. Book an appointment with an expert. Book Now. Share Share to Facebook Share to Linkedin. Related Articles. A person over the age of 21 who is not a full-time student is not considered a dependent for MLS purposes.

A person who is covered as a dependent aged over 21 on a family hospital policy, who also earns over the MLS income threshold, is liable to pay the MLS. To be exempt from the MLS, the person needs to take a hospital policy for themselves. If you have held hospital cover for part of the year, then you will have a partial exemption from the MLS.

You will have to pay the surcharge to account for the days that which you did not hold hospital cover. If you hold hospital cover but temporarily suspended payments for that cover for example, to travel overseas , then you are not exempt during the suspended period and you will have to pay the surcharge for the suspended days. To be exempt from the surcharge, your hospital cover must be held with a registered health insurer and cover some or all of the fees and charges for a stay in hospital.

If you are from a country with a reciprocal healthcare agreement with Australia, and you earn over the surcharge threshold, then you can avoid the surcharge by purchasing an approved hospital insurance policy. However, you should note that for people with reciprocal Medicare benefits, this type of insurance will provide limited benefits for hospital treatment and you will incur significant expenses if you are admitted as a private patient.

If you require cover for hospital treatment, you should use your reciprocal Medicare benefits as a public patient or consider Overseas Visitors Health Cover for treatment as a private patient.

The surcharge covers you and your dependents.