To avoid the surcharge, you must meet at least one of the following criteria:
- You’re single with a taxable income for MLS purposes under $93,000
- You’re a family with a combined taxable income for MLS purposes under $186,000
- Your income is over the threshold but you have approved hospital insurance from a registered health insurer
- Your income is not considered because you are under 18 and do not have any dependents.
If you are above the threshold for your own or your family’s income, you must obtain hospital cover for yourself, your partner, and your dependents to avoid the surcharge. If your partner or any dependents are not covered, you will have to pay the MLS.
If you’re over the age of 21, on a family hospital policy, and earning over the income threshold, you’ll still have to pay the MLS. To avoid paying for the MLS, you’ll have to take out individual hospital cover. For singles, the level of cover needs to have an excess of $750, and for families or couples, the excess should be $1500 or less.
If you bought hospital cover later on in the year, you will need to pay the surcharge for the days you didn't hold cover, or any days your payment was suspended – like during an overseas holiday, for example.