Finder makes money from featured partners, but editorial opinions are our own.
What is the Medicare Levy?
The Medicare Levy, which helps to fund Medicare, is a 2% income tax that's paid by most Aussies earning over $29,033. Some will be eligible for a partial or full exemption from the levy.
Who is this cover for?
No contact details required
Compare 40+ funds
Same price as going direct
Back
Close
I'm Tim, your insurance expert.
Here to help you find the right cover for you!
Step 1/2 - About your cover
Which state do you live in?
QLD
NSW
ACT
VIC
TAS
SA
WA
NT
What's your age?
Depending on your age, you may be eligible for an
aged-based discount. This is used to estimate your
rebate.
Under 65
65 - 69
70 or older
What's your household's taxable income?
This is the combined income you and your spouse earn before tax. It's needed to calculate the correct Australian government rebate.
$93,000 and under
$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
What kind of health insurance do you need?
Combined (Extras + Hospitals)
Extras
Hospital
What level of hospital coverage would you like?
You can change this at any time later.
Legend
Covered
Restricted cover, You may be partially covered for
this category.
Not covered. Optional for insurer to include.
*Prices updated October 2024, in line with Finder's database of health insurance policies. Prices reflect the cheapest available for a single individual with less than $97,000 income and living in Sydney with a $750 excess.
What extras cover do you need? (Optional)
Select as many as you want or move to the next step
Preventative & general dental
Major dental & implants
Optical
Physiotherapy
Podiatry
Non-PBS pharmaceuticals
Chiropractic
Emergency ambulance
Remedial massage
Create a Finder account to get an email copy of your results (optional)
Enter your email address
By entering your email address, you agree to create a Finder account subject to our Privacy & Cookies Policy and Terms of Service. We will send you an email to setup your password.
Why compare with us
You'll pay the same price as going direct - we don't
charge fees
We don't ask for your phone number to see prices
Hang tight - we're fetching policies just for you!
The Medicare Levy is charged at 2% of your annual income and goes towards funding Medicare.
You usually need to pay the full percentage if you earn over $29,033.
However, you may get an exemption if you are a low-income earner, or a reduction if you are a senior citizen.
What's the difference between the Medicare Levy and the Medicare Levy Surcharge?
The Medicare Levy is a 2% tax that goes towards funding the public health system. You pay a Medicare Levy in addition to the tax you pay on your taxable income. Most of us have to pay it unless we earn less than $23,226 a year.
The Medicare Levy Surcharge, on the other hand, is a tax that only applies if you earn over $97,000 a year and don't take out private hospital cover. It was put in place to encourage more Australians to take out private health insurance and alleviate the strain on the public healthcare system.
How much is the Medicare Levy?
The Medicare Levy is a flat 2% income tax for any earnings above the threshold set by the Australian Tax Office (ATO). These are the most recent figures, for 2020-21:
Medicare Levy 2021: When you pay
Singles – $23,226
If you're single and your income is below $23,226, you won't pay the levy. You'll pay part of the Medicare Levy if your taxable income is between $23,227 and $29,033. The full 2% applies on anything over $29,033.
Families – $39,167
For couples or single-parent families, the levy is reduced on any taxable income between $39,167 and $48,958, plus $4,496 per dependent child. The levy won't be charged if you earn less than $39,167 as a family.
Seniors – $36,705
For seniors who are eligible for the seniors and pensioners tax offset, you pay the levy on any taxable income above $36,705. The 2% rate kicks in once you earn more than $45,881.
Calculate your levy
To find out how much you'll need to pay, check out the ATO's Medicare Levy calculator. This allows you to estimate your Medicare Levy for the past four income years. Just have the following details handy:
Your taxable income
Your spouse or partner's taxable income (if any)
If you're eligible for a Medicare Levy exemption
Medicare Levy exemption
The Medicare Levy exemption is open to some Australians. Depending on your circumstances, you may be entitled to a full or partial exemption.
Who is exempt from the Medicare Levy?
You're exempt from paying the Medicare Levy if:
You are a foreign resident for tax purposes
You are not entitled to Medicare benefits
You earn under the lower threshold of $22,801
You qualify for a medical exemption
Your taxable income is greater than the lower threshold but less than the upper threshold
Your taxable income is greater than the lower threshold amount but you had a spouse
Your taxable income is greater than the lower threshold amount but you're entitled to an Invalid and Invalid Carer tax offset
Your taxable income is greater than the lower threshold amount but you were the sole carer of one or more dependent children
Full and half exemptions are available for blind pensioners, those on a Centrelink sickness allowance, and people who are entitled to full free medical treatment for all conditions under Defence Force arrangements or a Veterans' Affairs Repatriation Health Card (Gold Card). The requirements you must meet to qualify for this exemption vary depending on whether you are married or single, and whether you have any dependents.
How to claim Medicare Levy exemption
You can claim the Medicare Levy exemption when you lodge your tax return. You'll be asked:
What your annual income was (which will help determine your Medicare Levy exemption entitlements)
How many dependent children you had during the year
How many days you can claim a full exemption and how many days you can claim a half exemption
If you had a spouse at any time in 2020–2021, married or de facto
If you're entitled to any seniors tax offset
Should you get private health insurance on top of Medicare?
Unfortunately, Medicare doesn't cover everything – but private health insurance can help fill in the gaps. It can cover you for things like ambulance transportation,dental and optical, and often gives you access to treatment quicker than the public system.
Depending on your age, you may be eligible for an
aged-based discount. This is used to estimate your
rebate.
Under 65
65 - 69
70 or older
What's your household's taxable income?
This is the combined income you and your spouse earn before tax. It's needed to calculate the correct Australian government rebate.
$93,000 and under
$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
What kind of health insurance do you need?
Combined (Extras + Hospitals)
Extras
Hospital
What level of hospital coverage would you like?
You can change this at any time later.
Legend
Covered
Restricted cover, You may be partially covered for
this category.
Not covered. Optional for insurer to include.
*Prices updated March 2024, in line with Finder's
database of health insurance policies. Prices are based
on a single individual with less than $93,000 income and
living in Sydney with a $750 excess.
What extras cover do you need? (Optional)
Select as many as you want or move to the next step
Preventative & general dental
Major dental & implants
Optical
Physiotherapy
Podiatry
Non-PBS pharmaceuticals
Chiropractic
Emergency ambulance
Remedial massage
Email me my results (optional)
To get a copy of your results for later, add your email below
You'll pay the same price as going direct - we don't
charge fees
We don't ask for your phone number to see prices
Hang tight - we're fetching policies just for you!
Comparing quotes from 40+ funds...
Frequently asked questions
The Medicare Levy is a 2% tax on your income to help fund Medicare, Australia's public health system. It is seperate to the income tax you also pay. Your Medicare levy reduces, or isn't paid at all, if your income is below a certain amount.
Australian taxpayers help to pay for Medicare from their income tax. If you meet certain medical requirements, or if you aren't entitled to Medicare benefits, then you may be exempt from the levy.
It depends on your circumstances. Anyone with a taxable income that exceeds the minimum threshold of $36,705 has to pay pay the levy. But the threshold increases if you are entitled to the seniors and pensioners tax offset.
Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
Gary Ross's expertise
Gary Ross has written 650 Finder guides across topics including:
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
James's expertise
James has written 218 Finder guides across topics including:
Get affordable cover for ambulance transport if you are not already covered under Medicare. Compare quotes from Australian funds to decide which level of protection is best for you.
Are people with disabilities supported by government funding alone or does private health insurance also have a part to play? This guide looks at the contribution both sectors make to caring for the disabled.
Learn how to get cheap health insurance and what you can expect for your money.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Depending on your age, you may be eligible for an
aged-based discount. This is used to estimate your
rebate.
Under 65
65 - 69
70 or older
What's your household's taxable income?
This is the combined income you and your spouse earn before tax. It's needed to calculate the correct Australian government rebate.
$93,000 and under
$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
What kind of health insurance do you need?
Combined (Extras + Hospitals)
Extras
Hospital
What level of hospital coverage would you like?
You can change this at any time later.
Legend
Covered
Restricted cover, You may be partially covered for
this category.
Not covered. Optional for insurer to include.
*Prices updated March 2024, in line with Finder's
database of health insurance policies. Prices are based
on a single individual with less than $93,000 income and
living in Sydney with a $750 excess.
What extras cover do you need? (Optional)
Select as many as you want or move to the next step
Preventative & general dental
Major dental & implants
Optical
Physiotherapy
Podiatry
Non-PBS pharmaceuticals
Chiropractic
Emergency ambulance
Remedial massage
Email me my results (optional)
To get a copy of your results for later, add your email below