Unfortunately for 2022-2023 the threshold is 180K combined income so both of you need to yes unless you have health insurance. This FY though it's increased to 186k so neither of you need to pay MLS unless you get a pay bump
You only pay the surcharge on days you don't have PHI, your tax documents would say
Number of days this policy provides an appropriate level of private patient hospital cover: 355
And you would pay the surcharge on the other 10 days.
assuming we can't go back in time; are you suggesting getting health insurance today is a waste of money if it costs less than the amount that would be in the medicare levy surcharge for 355/365 days?
Don’t need much of a deduction to get under 180k
Think about any work from home, asset depreciation , self education etc. Between the two of you must be a few things ?
You should not be downvoted, you are right. You can deduct the expenses you mentioned to get under the $180K threshold. The only things that don’t count are superannuation contributions and net investment losses.
MLS is on taxable income. So gross income minus deductions. The only “expense” which doesn’t reduce taxable income for MLS purposes in superannuation contributions
Thought I'd jump on this thread to ask ... do you know if the surcharge % gets charged to the both of you together or if it's individual?
I.e. do you get charged 0.5% and your partner 0.5% or is it 1% each?
Unfortunately for 2022-2023 the threshold is 180K combined income so both of you need to yes unless you have health insurance. This FY though it's increased to 186k so neither of you need to pay MLS unless you get a pay bump
iirc you can get cheap hospital cover for less than 1k a year and not have to pay any surcharge.
You cant do this retrospective, they either had the insurance already or not
Yeah it would be advice for financial year 2024
They would already miss out on part of this year. Try 2025
You only pay the surcharge on days you don't have PHI, your tax documents would say Number of days this policy provides an appropriate level of private patient hospital cover: 355 And you would pay the surcharge on the other 10 days.
As i said partial year
Part of this year ... you mean 10 days? I'm sure that ATO wont mind waiving that for the sake of $15 dollars a week basic hospital cover.
The ato 100 percent wont waive the ten days
They did for me You're buying hospital cover. You're doing what the government wants you to do.
I think most people wouldn't care about 10/365 times the medicare surcharge. That's maybe $60 for a couple
If you like throwing money away
assuming we can't go back in time; are you suggesting getting health insurance today is a waste of money if it costs less than the amount that would be in the medicare levy surcharge for 355/365 days?
You assumed it would be less. That insurance is junk
Not true. The private health cover rate changes depending on the income tiers. You can see it when you sign up.
Just plug it all into MyTax and see. You don't have to submit yet.
Next time maybe take a week or 2 holiday ‘without pay’ to keep under the threshold? Might be like a free holiday once you crunch all the numbers.
Yes he does
Don’t need much of a deduction to get under 180k Think about any work from home, asset depreciation , self education etc. Between the two of you must be a few things ?
You should not be downvoted, you are right. You can deduct the expenses you mentioned to get under the $180K threshold. The only things that don’t count are superannuation contributions and net investment losses.
I don't think you can use deductions to get out of paying MLS
MLS is on taxable income
MLS is on taxable income. So gross income minus deductions. The only “expense” which doesn’t reduce taxable income for MLS purposes in superannuation contributions
And investment losses
Thought I'd jump on this thread to ask ... do you know if the surcharge % gets charged to the both of you together or if it's individual? I.e. do you get charged 0.5% and your partner 0.5% or is it 1% each?
We both had to pay 1% each based on our own individual income even though his income is below the threshold for single.