Family thresholds 2026–27
| Tier | Families* | MLS rate |
|---|---|---|
| Base | $210,000 or less | 0% |
| Tier 1 | $210,001 – $246,000 | 1% |
| Tier 2 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $328,001 or more | 1.5% |
*Family thresholds go up by $1,500 for each dependent child after the first.
How it works for couples
- Combined income decides the tier. Add both partners' income for MLS purposes and compare it with the family threshold.
- Each partner pays on their own income. If you're in tier 1, each of you pays 1% of your own taxable income and fringe benefits.
- Partner includes de facto. A married or de facto partner, including same-sex partners, counts.
- Children lift the threshold. Add $1,500 for each dependent child after the first.
Example
In 2026–27 you earn $120,000 and your partner earns $100,000, with no children and no hospital cover. Your combined $220,000 is in tier 1 (above $210,000), so you pay $1,200 and your partner pays $1,000: $2,200 for the household.
What cover you need
To avoid the surcharge, you and all your dependants need hospital cover with an excess of $1,500 or less. A couples or family hospital policy does this. If only one of you is covered, the other can still be charged.
There are exceptions, for example if one partner's own income is very low or you weren't a couple for the whole year. Check the ATO's guidance if that applies to you.
Check your own numbers. Use the MLS calculator to see what you'd pay and the monthly break-even for hospital cover.