What is the extra 1% Medicare levy and who does it affect?
The Federal Government has imposed an additional 1% Medicare levy on those above a specified level of income who don't have appropriate Hospital cover for themselves, a partner or any dependants. If the surcharge applies to you your Medicare levy increases from 1.5% to 2.5% of your taxable income.
| Your situation |
Income threshold |
| Single |
Taxable income and reportable fringe benefits of more than $80,000 a year |
| Couple/Family |
Combined taxable income and reportable fringe benefits of more than $160,000* per year (more if more than one child) |
*On a family membership this increases by $1,500 per child after the first child. Thresholds are effective 1 July 2011 and are indexed annually.
What type of Hospital cover will enable me to avoid the additional Medicare levy?
By choosing a Bupa Hospital cover you can have the peace of mind of knowing that the additional Medicare levy will not affect you from the date you join. Note that Overseas Visitors Products will not provide exemption from the Medicare Levy Surcharge. For more details, contact Bupa or consult your tax adviser for more information or visit ato.gov.au
