At tax time, a lot of people find themselves paying the Medicare Levy Surcharge (MLS) without really thinking about it. It just shows up in your tax bill. No warning. No real explanation.
So here’s the question worth asking: If you’re already paying, what are you getting for it?
What is MLS, really?
The Medicare Levy Surcharge is an extra tax some Australians pay if they:
- Earn above:
- $101,000 (single), or
- $202,000 (couple/family)
- And don’t have eligible hospital cover
If it applies, you could be paying an extra 1% to 1.5% of your income in tax.
👉 It’s a cost that shows up… but doesn’t give you anything back.
MLS vs Health Insurance: What’s the difference?
|
MLS (Tax) |
Hospital Cover |
|
|
What you pay for |
Public health system |
Private health cover |
|
What you get back |
Nothing |
Cover, choice, and control |
|
Flexibility |
None |
Choose your provider and timing |
|
Timing |
Paid at tax time |
Cover in place when you need it |
|
Long-term impact |
Ongoing cost |
Can help avoid future costs (like LHC) |
What does that look like for you?
Let’s make it real.
Example: You’re single, earning $110,000 in Victoria.
If you don’t have hospital cover, the Medicare Levy Surcharge could cost you $1,100 a year (1%)👉 That’s money you’re already paying. No choice. No benefit.
Now compare that to actual cover like our Starter Hospital $750 Excess with Daily Co-Pay (Basic) From just $1,030.63 per *
Covers you for Accidents, Emergency Ambulance and saves you from paying MLS.
Side-by-side
|
MLS (Tax) |
Hospital Cover |
|
|
Annual cost |
$1,100 |
From $1,030.63* |
|
What you get |
Nothing |
Cover for hospital, accidents, and emergencies |
|
Choice & control |
None |
Yes |
|
When you need it |
Not applicable |
Already in place |
What this actually means
You could be paying more in MLS than the cost of cover… or you could put that same spend towards something that actually gives you options.
It’s not just about tax
This is where most people pause. “I don’t need health insurance yet.”
And that might be true… right now. But this isn’t just about today.
With hospital cover, you’re also:
- Setting yourself up to avoid Lifetime Health Cover (LHC) loading later
- Starting your waiting periods now, not when you need care
- Giving yourself more choice and control if something unexpected happens
👉 Learn more about Lifetime Health Cover (LHC)
👉 Read more about waiting periods
What this comes down to
For a lot of people, the cost of MLS and the cost of cover aren’t that far apart.
So, it’s less about spending more, and more about setting yourself up for the future.
Ready to see how it stacks up?
If you’re not sure what makes sense for you, it’s worth taking a look.
At see-u, we’ve kept things simple on purpose. We’re designed for comparison, not confusion. So, when you line us up against other funds, it’s easy to see what you’re getting and what you’re not paying for.
Built to be compared. Easy to get started.
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