Private Health Insurance Calculator
Calculate your Medicare Levy Surcharge liability and compare it to private health insurance costs to determine the most cost-effective option.
Is Private Health Insurance Worth It?
Your Income Details
Include salary, investment income, and reportable fringe benefits
Health Insurance Options
Basic hospital cover starts from ~$80-150/month
Without Private Health Insurance
With Private Health Insurance
Your Analysis
Medicare Levy Surcharge (MLS) Thresholds FY 2025-26
| Income Threshold | Single | Family* | MLS Rate |
|---|---|---|---|
| No MLS | $0 - $101,000 | $0 - $202,000 | 0% |
| Tier 1 | $101,001 - $118,000 | $202,001 - $236,000 | 1.0% |
| Tier 2 | $118,001 - $158,000 | $236,001 - $316,000 | 1.25% |
| Tier 3 | $158,001+ | $316,001+ | 1.5% |
*Family threshold increases by $1,500 for each dependent child after the first.
Private Health Insurance Rebate (from 1 Apr 2026)
Rebate percentages indexed annually on 1 April. Income tiers shown are FY 2025-26.
| Single Income | Family Income | Under 65 | 65-69 | 70+ |
|---|---|---|---|---|
| $0 - $101,000 | $0 - $202,000 | 24.118% | 28.137% | 32.158% |
| $101,001 - $118,000 | $202,001 - $236,000 | 16.077% | 20.098% | 24.118% |
| $118,001 - $158,000 | $236,001 - $316,000 | 8.037% | 12.058% | 16.077% |
| $158,001+ | $316,001+ | 0% | 0% | 0% |
Lifetime Health Cover (LHC) Loading
If you don't take out hospital cover by July 1 following your 31st birthday, you'll pay 2% extra for each year you're without cover, up to a maximum of 70%.
Example:
If you first take out hospital cover at age 40, you'll pay 18% loading (2% × 9 years) on top of your premium for 10 continuous years.
Tip: Take out hospital cover before you turn 31 to avoid LHC loading entirely.
Key Considerations
Reasons to Get PHI
- • Avoid Medicare Levy Surcharge
- • Avoid Lifetime Health Cover loading
- • Choice of hospital and doctor
- • Skip public hospital waiting lists
- • Private room accommodation
- • Cover for extras (dental, optical, physio)
Things to Consider
- • Basic hospital cover avoids MLS
- • Waiting periods apply for most services
- • Gap fees may still apply
- • Compare policies carefully
- • Check inclusions and exclusions
- • Review your cover annually