Medicare levy surcharge income threshold and rates 2023–24
Income thresholds for the Medicare levy surcharge are changing
The income thresholds for Medicare levy surcharge purposes will increase from 1 July 2023.
The government recently announced changes to the income thresholds for the Medicare Levy Surcharge (MLS), which will take effect from 1 July 2023. The MLS is a tax that is applied to individuals and families who do not have an appropriate level of private hospital cover, and earn above a certain income threshold.
So, what exactly are these changes to the MLS income thresholds?
From 1 July 2023, the income thresholds for MLS purposes will increase, which means that more people will be exempt from the tax. The income thresholds and MLS rates for the 2023-24 income year are outlined below.
MLS Income threshold and rates 2023–24
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single threshold | $93,000 or less | $93,001 – $108,000 | $108,001 – $144,000 | $144,001 or more |
| Family threshold | $186,000 or less | $186,001 – $216,000 | $216,001 – $288,000 | $288,001 or more |
| Medicare levy surcharge | 0% | 1% | 1.25% | 1.5% |
It’s important to note that if you have dependent children, the family income threshold will be increased by $1,500 for each MLS dependent child after the first child. To work out which MLS rate applies to you, you can use the MLS income threshold table above once you have determined your income for MLS purposes.
It’s also worth noting that the MLS is separate from the Medicare Levy, which is a tax that is used to fund the public health system. The Medicare Levy is a flat rate of 2% of your taxable income, and it is paid by most Australian taxpayers.
Overall, these income thresholds play a significant role in determining the amount of tax an individual or family will be required to pay each financial year. It is important to stay informed about these thresholds to ensure that you are meeting your tax obligations and avoiding any penalties. If you have any questions or concerns about your tax obligations, it is recommended that you seek advice from a qualified tax professional.