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Picture Book · Tax in depth

The Medicare levy

Story pages

A man in his early forties with short sandy hair cycling to work along a leafy suburban street
Meet Daniel. He's 41, single, and earns $115,000.
A public hospital building with a garden courtyard in soft morning light
Most people pay a Medicare levy of 2% of their taxable income, on top of income tax.
A gentle slope of grass easing down to a creek
On lower incomes the levy can be reduced, or not apply at all.
A sturdy umbrella leaning beside a front door on a cloudy day
Separately, the Medicare levy surcharge can apply to people on higher incomes without appropriate private hospital cover.
Three small clay pots in a row
For 2026-27 it applies to singles earning over $105,000, at 1% to 1.5% depending on income.
A man in his early forties with short sandy hair reading on a couch with a cup of tea
Daniel compares the cost of hospital cover with the surcharge before he decides.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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