Pssssst, want to hear about a way you can pay more tax?
Of course you don’t! Nobody does. But did you know that if you don’t have private hospital cover, and you earn over $90,000 a year for singles, or over $180,000 for families and single parents, you may be paying the Medicare Levy Surcharge?
That’s one charge you don’t need in your life, and you don’t have to pay it. But before we get into the quick and easy fix, let’s take a look at why we have that Medicare Levy Surcharge (MLS) in the first place.
Medicare Levy Surcharge (MLS)
Australian taxpayers (that’s most of us) contribute to the cost of public healthcare through the Medicare Levy. If your income is over the above threshold, you may also pay the MLS if you don’t have private hospital cover.
The surcharge was created to encourage those on a higher income to take out private health cover and use the private hospital system, freeing up the public system for those who need it most.
The amount you pay depends on your income – but for many of us, it makes sense to take out private cover, so you not only avoid the MLS, but you enjoy the benefits of having private health care.
Take Barry, for example. Barry lives in country New South Wales, and earns $110,000 a year. Without private hospital cover, Barry would have to pay an extra $1375 in tax to cover the MLS. Instead, Barry has taken out a basic level of hospital cover with Union Health for around $20 a week, saving himself over $300 a year.
Maria earns $200,000 and lives in Queensland. Without private hospital cover, she’d be paying an extra $2100 in tax, but instead she’s opted for a higher level of private health cover with Union Health, and still saved herself around $500.
Would you like to know how much you could save on your tax bill by taking out private hospital cover?
Our no-commission consultants know how to find the cover that’s best for your life right now.
Union Health is a not-for-profit health fund with no shareholders to please, so there’s no hard sell. We exist purely to support our members.
Click here to book a call back, or phone 1300 661 283 today.
*Rates may differ depending on your Lifetime Heath Cover loading (LHC). Waiting periods may apply.