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Many Australians are paying the Medicare levy surcharge through their tax returns, when they could be buying private hospital insurance for about the same cost.
Taking out even a basic level of hospital cover, can be a cost-effective way to avoid the Medicare levy surcharge. And it could be of benefit in time of medical need.
People without private hospital cover earning more than $97,000 pay at least 1% extra annual tax via the surcharge, while those earning more than $150,000 pay 1.5% more.
It is worthwhile calculating the amount of surcharge you would pay versus the cost of private health insurance for basic hospital cover.
Some health policies cost little more than $1,050 annually. Extras cover does not affect the surcharge.
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