Study Finds Majority of Australians Don’t Understand Private Health and Tax

As the June 30 deadline approaches potentially six million policyholders are at risk of paying extra tax this end-of-financial year.

Facts and figures:

64% of Australians don’t understand what the Medicare Levy Surcharge (MLS) is.

39% are confused the MLS with the Medicare Levy paid by all taxpayers.

36% of Australians correctly understand that the MLS is an additional tax paid by higher income earners who don’t have private hospital cover.

Ask the expert:

Laura Crowden, spokesperson for iSelect:

“If you earn more than $90,000 a year and don’t have private hospital cover by June 30, then you will have to pay a minimum $900 in extra tax next financial year due to the MLS.”

“Exactly how much extra tax you’ll pay depends on how much you earn and for most higher income earners, taking out a basic hospital policy will generally cost less than paying the extra tax via the MLS.”

The details:

The YouGov Galaxy Research study was commissioned by the private health insurer iSelect.

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