The short answer
A single person with a dependent child is treated as a family. For 2026–27 that means no surcharge until your income for MLS purposes is over $210,000, plus $1,500 for each child after the first.
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.
Examples
- One child, $150,000 income: under $210,000, so no surcharge — even though a single person on $150,000 would be in tier 2.
- Three children, $212,000 income: the threshold is $210,000 + 2 × $1,500 = $213,000, so still no surcharge.
- One child, $230,000 income, no cover: tier 1, so 1% of $230,000 = $2,300.
Covering your kids
Above the threshold, you avoid the surcharge only if you and your dependent children have hospital cover with an excess of $1,500 or less. A single-parent family policy covers this.
Check your own numbers. Use the MLS calculator to see what you'd pay and the monthly break-even for hospital cover.