The Federal Government will ask you to pay an additional 1% Medicare levy if you have a taxable income and reportable fringe benefits of more than $70,000 a year for a single and $140,000 a year for couples and families with one child (threshold increases by $1,500 for each additional child) and don’t have appropriate hospital cover for you, your partner and all your dependents. This means that your Medicare levy could increase from 1.5% to 2.5% of your taxable income. You can avoid this additional levy simply by taking out MBF hospital cover with $0, $250 or $500 Excess. Please note: that MBF applies the Excess once per person to a maximum of twice per policy, in a calendar year. Taking out any MBF hospital cover with $1,000 Excess will not enable you to avoid the additional 1% Medicare levy.
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