Hospital, not just extras
Extras-only policies for dental, glasses and physio do not remove MLS. A Basic hospital policy may qualify, but check the actual policy: Basic cover can have very limited treatments.
Step 1 of 5 / household
Who's in your household?
A married couple uses the family MLS thresholds even with no children.
Why we ask:
The number of adults and children determines which tax thresholds apply and who needs hospital cover to avoid the extra tax.
Each dependent child after the first lifts the family MLS thresholds by $1,500.
Premiums and ambulance benefits vary by location. This is not used to invent a price.
When would your new hospital cover start?
For 2026-27: 1 July 2026 to 30 June 2027.
Choose the second option only if every required family member was covered from 1 July.
Plain English:
Medicare is the public health system. The usual 2% Medicare levy generally stays regardless of private insurance. The
MLS
is a separate extra charge that qualifying hospital cover can avoid.
Step 2 of 5 / money
How much does your household earn?
Enter taxable income , not turnover. A sole trader uses business profit after allowable deductions, plus other personal taxable income.
Salary, net sole-trader profit and other taxable amounts.
$0 is fine if your spouse has no taxable income.
Family income for the surcharge tier
$300,000
Family Tier 2
Advanced: super, investments and fringe benefits (optional)
Only enter amounts NOT already included in taxable income. These can change the tax tier without always changing the amount the MLS is charged on. This section follows the ATO income definition; seek a tax-agent check for unusual income.
Adult 1 additional income items
Adult 2 additional income items
2026-27 couples/families:
0% through $210,000; 1% above $210,000 through $246,000; 1.25% above $246,000 through $328,000; 1.5% above $328,000. For singles the cut-offs are $105k / $123k / $164k. Add $1,500 to each family cut-off per dependent child after the first.
Important: MLS is not calculated in progressive brackets. The family income sets one rate, which applies to each liable adult's surcharge calculation base before income tax or the usual Medicare levy. For couples together all year, a spouse with own MLS income of $28,011 or less is exempt from their own MLS, even when the other spouse owes it.
Important: MLS is not calculated in progressive brackets. The family income sets one rate, which applies to each liable adult's surcharge calculation base before income tax or the usual Medicare levy. For couples together all year, a spouse with own MLS income of $28,011 or less is exempt from their own MLS, even when the other spouse owes it.
Not automatically modelled:
part-year changes in marital/dependent status; Medicare exemptions; FHSS adjustments; special trust situations; and changes in tax law after 2026-27. Get these reviewed before relying on the estimate.
Step 3 of 5 / age
Will there be a late-joining loading?
LHC (Lifetime Health Cover) is an extra amount added to the hospital premium , not a separate tax. It isn't the MLS.
Simple rule:
For most Australian residents, buying hospital cover by 1 July after turning 31 avoids LHC loading. Joining later for the first time can add 2% per year over age 30 (up to 70%). For couples the adults' rates are averaged. A loading stops after 10 qualifying continuous years.
Estimated loading applied to your family hospital premium
18%
Adult 1: 20% | Adult 2: 16% | Average 18%
Important:
People who previously held cover, migrants, overseas residents and some Defence/DVA members may have special LHC rules. First-time estimates use each adult's age on the
1 July immediately before joining
. Always obtain an insurer-confirmed LHC rate before buying.
Step 4 of 5 / compare
Enter up to 3 real insurance quotes
You can compare policies from different insurers. This calculator does not invent or download live premiums.
Tip:
Ask each insurer for a
hospital-only annual quote
for every required family member. Select whether the quote is a standard premium before rebates/loading or the final amount you'll actually pay.
Option A
Option B
Option C
No insurer prices are preloaded. Enter an actual insurer quote and confirm its final premium and MLS eligibility. Policies may have treatment exclusions, restrictions, co-payments, doctor gaps and waiting periods even if they avoid MLS.
Optional: will extras pay for themselves?
Extras are separate from hospital cover. Estimate what the insurer would actually reimburse for your household, not the full price of treatment. Check benefit limits before entering amounts.
Use your insurer's after-rebate extras-only premium. Do not enter again if your hospital quote already includes extras.
Add a quote to calculate the value of extras.
Step 5 of 5 / review
Your financial comparison
Compare the extra tax avoided with the net price of insurance . Benefits, exclusions and gap payments still matter.
Full-year MLS with no hospital cover
$3,750
Additional tax only; the standard Medicare levy is unchanged.
What you still owe in MLS if starting mid-year
$1,300
An eligible policy only removes MLS for covered days.
Full-year comparison (steady-state)
Current financial year if you join on your chosen date
Questions to check with the insurer
These are your final checks. The lowest premium can still come with major exclusions or out-of-pocket hospital costs.
0 of 9 checked
Accuracy & limits:
Uses published 2026-27 Australian MLS tiers and rebate percentages through 31 March 2027. The April-June 2027 rebate adjustment may differ; age-based insurer discounts are only included when using a final quoted premium. Current-year comparisons proportionally allocate a full year's premium and MLS using cover days. LHC first-time estimates assume standard Australian residency rules and have to be confirmed by the insurer. Unusual incomes, medical exemptions, late-year policy changes, family changes, gaps, waiting periods and medical out-of-pocket costs require individual assessment. Neither private insurance nor extras cancels the ordinary Medicare levy. Educational estimates only; do not rely on this tool to purchase insurance or make financial decisions without independent verification and professional advice.
All calculations run on this device.