Medicare levy surcharge what is it

Note that extras only cover does not exempt you from paying the Medicare Levy Surcharge. It only takes a few minutes to get a free health insurance quote. What is the Medicare Levy Surcharge? How does the Medicare Levy Surcharge work? With private hospital cover. Rely on the public hospital system or self-fund your treatment That could mean long waiting lists, and no choice of doctor or hospital—or if you self-fund, it can mean large out-of-pocket costs.

Get private hospital cover from Australian Unity Depending on your level of cover that can mean choice of hospital and doctor, scheduling surgery at a time that suits you, and getting a private room where available. And you may get A reminder from your accountant each year at tax time that you should take out private hospital cover! And you get Depending on your level of cover you can be treated as a private patient in both private and public hospitals and be covered for emergency ambulance transportation.

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.

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Related Articles. Tax season can be stressful for many people — and this stress can make you more vulnerable to sca Understanding How Tax is Calculated in Australia. 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.