2026–27 (1 July 2026 – 30 June 2027)
| Tier | Singles | Families* | MLS rate |
|---|---|---|---|
| Base | $105,000 or less | $210,000 or less | 0% |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001 or more | $328,001 or more | 1.5% |
*Family thresholds go up by $1,500 for each dependent child after the first.
2025–26 (1 July 2025 – 30 June 2026)
| Tier | Singles | Families* | MLS rate |
|---|---|---|---|
| Base | $101,000 or less | $202,000 or less | 0% |
| Tier 1 | $101,001 – $118,000 | $202,001 – $236,000 | 1% |
| Tier 2 | $118,001 – $158,000 | $236,001 – $316,000 | 1.25% |
| Tier 3 | $158,001 or more | $316,001 or more | 1.5% |
*Family thresholds go up by $1,500 for each dependent child after the first.
Which income is compared with the thresholds?
The ATO uses your income for MLS purposes, which is more than your taxable income. It adds up:
- taxable income
- reportable fringe benefits
- reportable super contributions, such as salary-sacrificed super
- total net investment losses, such as a negatively geared property
If you have a partner, you add their amounts too and use the family threshold.
What the rate is charged on
Once you know your tier, the rate is charged on your taxable income and reportable fringe benefits only, not on super or investment losses. For example, the ATO says someone with $90,000 taxable income and $20,000 fringe benefits in tier 2 pays ($90,000 + $20,000) × 1.25% = $1,375.
When the thresholds change
The thresholds were frozen at $90,000 for singles for several years and have been indexed each year since 2023–24. 2026–27 is the first year above $105,000 for singles.
Check your own numbers. Use the MLS calculator to see what you'd pay and the monthly break-even for hospital cover.