Got an Answer?
The general Medicare levy you still have to pay.
Private health insurance only makes you exempt from the medicare surcharge if you combined earn over $180,000 per year.
If you earn less than that you arent exempt from it because you dont earn enough to pay it in the first place.
There's the medicare levy and the medicare levy surcharge. Two separate things. Having full hospital cover gives you a reduction in the medicare levy surcharge. You still have to pay the medicare levy.
From ATO web
Medicare gives Australian residents access to health care. It is partly funded by taxpayers who pay a Medicare levy of 2% of their taxable income.
Your Medicare levy is reduced if your taxable income is below a certain threshold. In some cases you may not have to pay the levy at all.
If you don’t have private hospital health insurance, you may have to pay the Medicare levy surcharge (MLS) in addition to the Medicare levy. This depends on your income for MLS purposes.
If you do have an appropriate level of private hospital health insurance, you won't have to pay the MLS, and depending on your income you may be eligible for the private health insurance rebate. This rebate is an amount the government contributes towards the cost of your private hospital health insurance premiums.
The Medicare levy and MLS and any reductions are calculated from information provided in your tax return.
If you don’t take out Private Hospital Cover by your 31st birthday, you will be forced to pay a 2% loading for every year you are aged over 30.
If you’re privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. If, for example, you wait until you’re 40 to take out private health insurance you’ll pay an extra 20% and if you wait until you’re 45 you’ll pay an extra 30%. The maximum loading is 70%.