Calculating Medicare Levy Surcharge for Tax

Dobby33 on 08/11/2015 - 20:34

Hi guys,

Just after some information on how to calculate weather or not I am liable for the MLS. If there are any accountants (or anyone else in the know) willing to respond, it'g greatly appreciated!

I understand that the income used to calculate your liability for the charge includes the following:
-reportable fringe benefits
-reportable superannuation contributions
-your net investment loss

However I am confused with the second one - Reportable Superannuation contributions. For example, if my base salary was $85kpa and my employers pays the required super contributions of $8075pa, would I need to pay the MLS? I understand this totals over $90k however the super contributions do not show up under 'reportable super contributions' section on my payment summary.

Also if I am paid allowances/overtime as part of my job, would that all be included as income for MLS purposes?

I am just deciding if its appropriate to purchase hospital cover or see if I can get away without it and avoid the MLS.

Thanks!

Financial

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Comments

  • retiredfeline on 08/11/2015 - 20:50

    Have you tried the online calculator at the ATO? Though it seems to be down the moment.

  • Shadowsfury on 08/11/2015 - 21:26

    I think reportable super contributions are those beyond the required 9.5% - e.g. if you salary sacrificed beyond 9.5%. Therefore if I were in your situation, I'd be looking at ignoring the $8,075

  • Mr Frodo on 08/11/2015 - 21:34

    I'm not an accountant but I remember a few things when I did my tax return this year- the $90k you are referring to is the "taxable income". So this would not include any deductions you might claim, and it certainly does not include employer super contributions. Second, even if you did exceed the $90k taxable income threshold, you might not have to pay the MLS so long you have a spouse (and you've declared them) and your combined income does not exceed $180k a year.
    Most of the times, reportable super contributions show as 0, I don't understand why. I had a look at 4 of my last notice of assessments and they all say 0, when I know contributions were made towards my super by my employer. So I wouldn't worry about it too much. With regards to your overtime pay, as long as your employer paid it to you on one of the pay slips in the tax year, it would automatically be added to your taxable income.
    Finally, if you're doing the tax return via eTax, it will automatically calculate whether or not you need to pay MLS. Good luck! I got $38 back this year when I thought i had to pay- so I must have done something right.

  • Dobby33 on 08/11/2015 - 22:59

    Excellent! Thank you for the responses.

  • blueyez on 14/06/2022 - 21:08

    How would this work if my employer pays above the minimum for super contributions? Because this would take me over the threshold based on full time salary.

    I'm working part time now but likely to go full time halfway into the financial year, so when should I worry about getting cover?

    Getting confused trying to calculate my income with a new job

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