What’s new

29 February 2024


The Medicare Levy, Medicare Levy Surcharge & Private Health Care Rebate are all items administered via the taxation system that are affected as your level of taxable income changes.

Medicare Levy:

  • The Medicare levy is collected via your tax return, based on 2% of personal taxable income. The Australian Taxation Office (ATO) will work out the actual amount when you lodge your tax return, and this will be listed on your Notice of Assessment for each financial year.
  • If your taxable income is less than the Medicare thresholds of $26,000 (individual) or $43,846 (family), you are not required to pay the Medicare Levy. These are the current figures for the 2023-2024 financial year.
  • This threshold is increased to $38,365 (as of 2023-2024 financial year) for seniors and pensioners entitled to the seniors and pensioners tax offset.
  • If you are an employee, the Medicare Levy is calculated as part of the tax deducted by your employer. 

Medicare Levy Surcharge:

  • The Medicare Levy Surcharge is a separate charge to the standard Medicare Levy.
  • The Medicare Levy Surcharge may apply, depending on your taxable income and private hospital health insurance status.
  • The Medicare Levy Surcharge threshold is $93,000 for singles and $186,000 for families (for the 2023-2024 financial year).
  • If your taxable income is more than the Medicare Levy Surcharge threshold and you don’t have private health cover, you may be required to pay the Medicare Levy Surcharge.
  • To avoid this surcharge, you, your spouse, and all dependents must, at a minimum, have hospital cover via private health insurance.  
  • For more information, please visit the ATO here.

Private Health Care Rebate:

  • This rebate is income tested on a single income or family income basis.
  • The family income threshold is increased by $1,500 for each dependent child after the first child.
  • Single parents and couples, including those separated from their spouse and those whose spouse has passed away are assessed on the family tier.
  • The Private Health insurance rebate has increased from 1 July 2023.

For more information, please read here

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