Medicare levy surcharge thresholds

The Medicare levy surcharge of 1% is imposed over and above the standard Medicare levy of the 1.5% .  It is charged where a taxpayer, their spouse and dependants do not have eligible private patient hospital cover and the taxpayer's 'income for surcharge purposes' (which includes reportable fringe benefits, reportable superannuation contributions and total net investment losses) exceeds the relevant threshold:

The Medicare levy surcharge income thresholds have been increased for the 2010/11 income year as follows:

• Single surcharge threshold – $77,000 (up from $73,000 for 2009/10); and
• Family surcharge threshold – $154,000 (up from $146,000 for 2009/10).

It is important for tax payers to review their income before the end of financial year to ensure they do not incure the extra levy.