Keep the Medicare Levy Surcharge off your tax bill
The Medicare Levy Surcharge of 1% of taxable income will apply if you do not have an appropriate level of hospital insurance and your taxable income is over $50,000* per year as an individual or a combined $100,000* per year for most couples or families. This income threshold increases by $1,500* for each additional child after the first. The surcharge is in addition to your Medicare Levy.
By taking out any hospital insurance with Defence Health, you will be exempt from paying the Medicare Levy Surcharge.
If you need financial advice please seek the services of your accountant or financial advisor.
Medicare Levy Surcharge and the ADF
Single, permanent ADF members are exempt from the Medicare Levy Surcharge. However, permanent ADF members with a civilian spouse/defacto earning a taxable income will need to consider the impact of the Medicare Levy Surcharge where the combined taxable income is over $100,000* per year, with the income threshold increasing by $1,500* for each additional child after the first. The amount payable by both you and your spouse/defacto will be 1% of your individual taxable income.
* The Medicare Levy Surcharge income thresholds were current as at 1 April 2008.