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Medicare levy surcharge OR basic health insurance ?

Do the sums for your circumstances


Many Australians are paying the Medicare levy surcharge through their tax returns, when they could be buying private hospital insurance for about the same cost.

Taking out even a basic level of hospital cover, can be a cost-effective way to avoid the Medicare levy surcharge. And it could be of benefit in time of medical need.

People without private hospital cover earning more than $97,000 pay at least 1% extra annual tax via the surcharge, while those earning more than $150,000 pay 1.5% more. 

It is worthwhile calculating the amount of surcharge you would pay versus the cost of private health insurance for basic hospital cover.

Some health policies cost little more than $1,050 annually. Extras cover does not affect the surcharge.