Finder makes money from featured partners, but editorial opinions are our own.

Earn over $90K? You could save $900+ in tax with basic private health cover

Shot of a young woman using a mobile phone, laptop and writing notes while working from home 1800 x 1000

We found four hospital policies that cost less than the minimum Medicare levy surcharge.

If you're a high earner, you could be hit with an extra levy at tax time if you haven't sorted out your private health cover.

This is because of the Medicare levy surcharge (MLS), a government tax set up to help relieve some of the burden on the public health system.

Am I liable for the Medicare levy surcharge?

The MLS applies only to single people who earn more than $90,000 and couples or families with a combined income of over $180,000.

If you're single, you'll be charged the MLS if you don't have hospital cover with an excess of $750 or less. For couples or families, you'll need cover with an excess of $1,500 or less to avoid the levy.

How much is the Medicare levy surcharge?

The levy you'll pay come tax time will be between 1% and 1.5% of your income, depending on your earning bracket.

Let's say you're earning just over $90k – that equates to a monthly tax of at least $75 (the rate increases if you earn more than $105k, and it goes up again after $140k).

How to get around the government tax

If you're eligible to pay the levy, there's some good news. You can sort out hospital cover for less than the cost of the actual surcharge. In addition to tax savings, of course, you'll also have some private hospital cover.

Finder's research team found four hospital policies that worked out to be cheaper than the minimum surcharge of $75 per month. That's assuming a single person who earns a smidge above the $90,000 minimum-earn threshold.

Frank health insurance logoFrank Entry Hospital (Basic+)Basic$750$73.85Get quote
HBF health insurance logoHBF Basic Hospital PlusBasic$750$74.15Get quote
HealthPartners Health Insurance logoHealth Partners Basic Hospital PlusBasic$750$70.80

More info

CBHS health insurance logoCBHS Basic Plus HospitalBasic$750$74.29

More info

ahm starter basic plan is another option for just $75.10. Alternatively, you could look for a hospital and extras plan if you'd like a bit more from your health cover.

As tax season draws closer, now is a great time to find a health insurance policy that meets your needs – doing so could save you hundreds of dollars at the same time.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site