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The Medicare Levy and the Medicare Levy Surcharge might sound the same, but they are quite different. Both support the public health system, but in different ways.
Most Australian taxpayers pay the Medicare Levy, whether or not they have a private health insurance policy. The Medicare Levy is 2% of your taxable income, and it will come from the majority of Australian taxpayers.
If you earn $30,000 a year, for instance, then $600 will go to the Medicare Levy. If you earn $70,000, you’ll pay $1,400. Simply put, the Medicare Levy is a tax the government uses to help finance the free healthcare and medical services it offers its citizens.
For more information on the differences between the Medicare Levy and the Medicare Levy Surcharge, and to compare you health insurance options for free, visit healthinsurancecomparison.com.au