Medicare Levy Surcharge
May 2007

If a single person's taxable income and reportable fringe benefits are greater than $50,000 then they will have to pay a Medicare levy surcharge of 1% based on the number of days that they are not covered for private hospital cover. Private hospital cover has a similar cost, but at least you get cover.

Private hospital cover does not cover you for hospitalization overseas, so the medical funds offer to suspend your cover while travelling, thus saving you part of the premium. However the downside is that you then become liable for the Medicare levy surcharge for the days that you are not covered.

Contact us if you are unsure about your surcharge liability.