Medicare Levy Surcharge for Families: Thresholds With 1 to 4 Children
How family MLS thresholds rise $1,500 for each child after the first, the surcharge on a $240,000 family income, and how partners pay it.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
The Medicare levy surcharge (MLS) applies if your income is over the threshold and you don't have an appropriate level of private hospital cover. For couples and families, the threshold is based on combined income, and it rises by $1,500 for each dependent child after the first.
Family thresholds by number of children
| Family | No surcharge up to | 1% up to | 1.25% up to | Rate on $240,000 | Surcharge on $240,000 |
|---|---|---|---|---|---|
| Couple, no children | $210,000 | $246,000 | $328,000 | 1.00% | $2,400 |
| 1 child | $210,000 | $246,000 | $328,000 | 1.00% | $2,400 |
| 2 children | $211,500 | $247,500 | $329,500 | 1.00% | $2,400 |
| 3 children | $213,000 | $249,000 | $331,000 | 1.00% | $2,400 |
| 4 children | $214,500 | $250,500 | $332,500 | 1.00% | $2,400 |
How it works for a family
- The family threshold is used if you have a spouse (married or de facto) or dependent children at any time in the year.
- Your tier is set by combined family income, but each partner pays the surcharge on their own income.
- A single parent uses the family threshold too.
- You only pay for the days you weren't covered, so taking out cover part way through the year cuts the bill.