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I earn $55K. Do I have to pay the Medicare Levy Surcharge of 1%

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Mike’s Question -

Hi Josie, Great show yesterday…Unfortunately I didn’t get a chance to call the show (I was driving) However, this was the question I was going to ask, “If I earn $55K do I have to pay the Medicare Levy Surcharge?”

Josie’s answer: Thanks for listening to our show Mike and good on you for not talking on your mobile while driving. You can always drop me a line later here at askjosiekay.com. (Ask me a Question)

Now to your question - Assuming you are single, if you don’t have private hospital cover through private health insurance, you will be have to pay an extra 1% surcharge (on top of the 1.5% that you already pay).

If you are married, you won’t have to pay if your taxable income (plus reportable fringe benefits) is $100K. It increases to $101,500 if you have 2 kids, plus $1,500 for each additional child.

I would suggest that you go to iselect.com.au to shop around for private health insurance.

There are many things you can do to keep premiums down, e.g. incorporate an excess of say $500, exclude some medical conditions (if you are a single male, obviously you don’t need cover for pregnancy).

As an aside, what a joke calling it a levy and surcharge. It is a tax and I get annoyed with politicians using smoke and mirrors to avoid the word ‘tax’. I am also annoyed that the income thresholds are not indexed and never have been since it was introduced years ago.

Thanks for submitting your question….I hope that helps. Don’t forget you can listen to our National Radio show (Australia) Sunday mornings from 8am.

Find us on a radio station in a city or Town near you .

Don’t forget that the above information is general in nature and not specific to your goals and objectives. It is recommended that you seek personal financial advice specific to your needs. Also remember, that apathy can end up being your biggest expense!

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