Medicare levy surcharge, thresholds and rates

Different Medicare levy surcharge thresholds and rates apply to individuals and families. We use a special definition of income (called income for MLS purposes) to determine whether you are liable to pay the Medicare levy surcharge and the rate you will have to pay.

What is included in income for MLS purposes?

If you have a spouse, your combined income for MLS purposes will be used.

Your income for MLS purposes is the sum of the following items for you (and your spouse, if you have one):

  • taxable income (including the net amount on which family trust distribution tax has been paid)
  • reportable fringe benefits (as reported on your payment summary)
  • total net investment losses (includes both net financial investment losses and net rental property losses)
  • reportable super contributions (includes reportable employer super contributions and deductible personal super contributions)
  • if you have a spouse, their share of the net income of a trust on which the trustee must pay tax (under section 98 of the Income Tax Assessment Act 1936) and which has not been included in their taxable income
  • exempt foreign employment income (if you or your spouse had a taxable income of $1 or more and received such income)

If you (or your spouse) are 55 to 59 years old and received a super lump sum, reduce income for MLS purposes by any taxed element of the lump sum, other than a death benefit, that does not exceed your (their) low rate cap.

Income thresholds and MLS rate for 2014–15, 2015–16, 2016–17 and 2017–18

MLS Table

For families, the income thresholds increase by $1,500 for each MLS dependent child after the first.


If you are unsure if your need to pay the Medicare Surcharge call Taxwise Australia on 08 9248 8124.

Warren Kruger

Specialist Tax Consultant - “Helping YOU Pay The Correct Tax And Not A Penny More”. My story starts on Christmas Eve, back in 1983 in South Africa.

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