Family Medicare levy surcharge thresholds Australia
Family MLS rules catch people because the rate is not based on one salary. It is based on combined family income, then charged separately to each adult.
Quick answer: the base family MLS threshold is 202,000.00. It increases by 1,500.00 for each dependant child after the first. Once combined family income crosses a tier, that MLS rate is applied to each adult's income.
Family thresholds by number of dependant children
| Dependants | Tier 1 starts | Tier 2 starts | Tier 3 starts |
|---|---|---|---|
| Couple, no children | 202,000.00 | 236,000.00 | 316,000.00 |
| 1 child | 202,000.00 | 236,000.00 | 316,000.00 |
| 2 children | 203,500.00 | 237,500.00 | 317,500.00 |
| 3 children | 205,000.00 | 239,000.00 | 319,000.00 |
| 4 children | 206,500.00 | 240,500.00 | 320,500.00 |
Why family MLS feels counterintuitive
- A couple on 120,000.00 and 110,000.00 can trigger family MLS even though neither salary alone is extreme.
- The rate is set using family income, but the charge is applied to each adult separately.
- One child does not raise the threshold. The uplift starts after the first child.
What to compare before buying cover
- Estimate total household MLS without cover.
- Estimate the net family hospital premium after any rebate.
- Check whether one or both adults carry LHC loading.
- Compare the net premium to total family MLS, not to one adult's MLS alone.
Return to the full thresholds page
Use the general MLS page if you need the single-income tiers or a broader overview before drilling into family rules.
Return to the decision hub
Use the broad worth-it framework after confirming the family threshold logic.
Calculate family MLS
Use the current MLS calculator with spouse income and dependants.
Rebate calculator
Think in net family premium rather than the sticker cost.
Frequently asked questions
How is the family MLS threshold calculated?
The base family threshold is set for couples and single parents, then increases by $1,500 for each dependant child after the first.
Why can one spouse still pay MLS if their own income is below $101,000?
Because the family MLS rate is determined by combined family income. Once the family rate is set, the surcharge is applied separately to each adult's income.
Do all adults on the policy need hospital cover?
To avoid the MLS, you, your spouse and dependant children generally need appropriate private patient hospital cover.
Does one child raise the family threshold?
No. The threshold uplift starts after the first dependant child. One child keeps the base family threshold.
Tax Accuracy & Sources
This page explains family MLS thresholds and dependant uplifts. It is designed to support planning and internal comparison, not to replace tax-return instructions.