Your smart move to avoid paying extra tax this year
Tax time often
feels like a financial ambush - but if you’re earning more than $97,000 a year and don’t have eligible
private hospital cover, you could be hit with the Medicare Levy Surcharge (MLS). It's an extra tax of up
to 1.5% on top of the 2% Medicare levy. Ouch.
Then there’s the medicare rebate - are you
eligible?
Are you paying the Medicare Levy Surcharge?
Did you know you can avoid this extra tax by taking out private hospital cover before 30 June this year. Even basic hospital cover that meets government requirements will do the trick.
Let’s break it down:
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
You read that right - not all health cover gives you a break on your taxable income. You’ll want to ensure your health insurance policy includes hospital cover, because you’ll avoid:
- The Medicare Levy Surcharge (MLS) for the period you hold eligible cover. Find out more here.
- Being hit with the Lifetime Health Cover rating (LHCL) if you take out health cover before age 31.
Most people can also get a private health insurance rebate, which can save you up to 30% off your insurance premium (depending on your age and income)
**Private
health insurance rebate
^^$295 based on 239,107 sold over the past 10 years.
#Compare Club compares
selected products from a panel of trusted insurers. We do not compare all products in the market.
Paying too much?
Australia: We
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* Average savings of $300 based on 136,746 customers between 1 Jan 2018 and 23 Dec 2022
Thomas E.
Updated
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Earn over $97,000 (or $194,000 for couples)? You’re in MLS territory.^
-
No private hospital cover? You’ll likely be taxed an extra 1-1.5% of your income.^
-
Getting eligible hospital cover before 30 June can mean you avoid paying the surcharge - and you can get your health needs covered at the same time. Not bad!
And here's the really good bit: hospital cover can often cost less than the MLS itself - so you might actually save money and avoid the tax slug.
Compare hospital cover now and stop giving the ATO more than they deserve. Take a couple of minutes to:
-
Avoid the MLS,
-
Find out what health cover rebate you can get.
Now’s the perfect time to see if you could pay less for your cover - and your taxes.
Did you know your health insurance can save you money on your taxes? It’s true - and it’s not even that hard to do.
How?
Compare health insurance policies (or ask our experts to do it for you) to keep more of your income in your pocket, where it belongs.#
Speaking of which, don’t forget your rebate.
The private health insurance rebate is one of the few times the taxman gives you something back.
If you're eligible, the government chips in to reduce the cost of your health insurance premium, either upfront or via a refund at tax time. You could get up to 32%** of your private health insurance premium refunded to you.
For many Australians, it’s a handy way to make quality private cover more affordable. Think of it as a quiet little bonus for doing the right thing for your health.
Read all about it here.
Or just ask our health cover experts, who have already saved over 239,000 Australians an average of $295^^ by helping them compare health cover.
Compare
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