Hospital cover in the Northern Territory: the cheapest way out of the surcharge

Territory premiums are a fraction of those in the southern states, so the sum between surcharge and cover gives a very clear answer here.

Taxable income plus fringe benefits, super contributions, investment losses

Sets the rebate band: under 65, 65 to 69, 70 or over

More options

0 % if you have held hospital cover since 31

Full premium before rebate, as printed on the quote

Counted for the tier, not charged at the rate

The cheapest exempt cover costs less than the surcharge by

$804

Surcharge $1,200 against $396 of cover: ahm health insurance, ambulance hospital (basic) (Basic, $750 excess), $39.30 a month before rebate.

Income tested: $120,000Tier 1, 1.00 %
Surcharge without cover, you$1,200
Cheapest exempt policy, full premium$472
Rebate (16.079 %)-$76
Net cost of the policy$396
Income from which cover is cheaper$105,500

Premiums: PrivateHealth.gov.au file of 2026-10-01, 448 open policies that avoid the surcharge for this cover type in Northern Territory. Premiums change on 1 April 2027.

How this is computed

Prepared by Radif Partners · How the figures are built · thresholds read on ato.gov.au, premiums from privatehealth.gov.au data · not tax advice

In the Northern Territory the cheapest open hospital policy that avoids the Medicare levy surcharge costs $39.30 a month for a single person before the rebate, $472 a year, in the PrivateHealth.gov.au file of 1 October 2026. That is about 2.6 times less than the cheapest equivalent in New South Wales. The surcharge, on the other hand, is a federal tax and costs the same in Darwin as in Sydney: $1,100 on an income of $110,000, $1,750 on $140,000. After the rebate the cheapest Territory policy costs $396 a year at the first income and $434 at the second. Even the cheapest Gold policy, at $129.90 a month, beats the surcharge from $123,500. The calculator above starts on the Territory; change the income, the family or the age.

Every hospital tier beats the surcharge somewhere

In most states the question is whether a Basic policy is cheaper than the surcharge. In the Territory the question shifts: from which income is a better policy also cheaper than the tax? The table gives, for each hospital tier, the cheapest open policy in the October 2026 file and the lowest single income at which its net cost, after the rebate, falls under the surcharge.

Single person aged 35, no loading, rates of 1 April 2026.
Hospital tierCheapest per monthInsurerCheaper than the surcharge from
Basic$39.30ahm health insurance$105,500
Basic Plus$51.17HCF$105,500
Bronze$63.10ahm health insurance$105,500
Bronze Plus$59.00see-u by HBF$105,500
Silver$94.30GMHBA Limited$105,500
Silver Plus$69.45HCF$105,500
Gold$129.90Medibank Private Limited$123,500

The result is unusual. A single Territorian on $130,000 who wants more than an accident policy can buy a Silver Plus policy for $69.45 a month, and it still costs less after the rebate than the $1,625 surcharge. Even the median exempt policy at $108.15 wins from $109,000. In New South Wales the median exempt single policy costs $186.10 a month, and at that price it only beats the surcharge from $164,500. In relative terms the ladder is steeper here: the cheapest Gold policy costs 3.3 times the cheapest Basic one, against 2.4 times in NSW, but the dollars at stake are small.

Your income in the Territory

The cheapest exempt cover costs less than the surcharge by

$1,441

Income tested: $150,000Tier 2, 1.25 %
Surcharge without cover, you$1,875
Cheapest exempt policy, full premium$472
Rebate (8.038 %)-$38
Open the full calculator →

Families and couples

For a couple, the cheapest exempt policy is $78.60 a month, and for a family $78.60, twice the single price as is usual. A single parent pays $64.00. A Territory couple on a combined $240,000, split $150,000 and $90,000, would pay $2,400 of surcharge between them without cover; the cheapest couple policy costs $792 after the rebate. The couples page explains how the combined test and the separate bills work.

Read the policy before you buy it

The cheapest Territory policy, from ahm health insurance, is a Basic policy with a $750 excess. Basic is the lowest of the four hospital tiers, and the cheapest Basic policies tend to cover little beyond what the tier requires. That is enough to avoid the surcharge, because the tax rule looks at the excess and not the tier, but it may not be enough if you want to be treated as a private patient for planned surgery. Each policy's Private Health Information Statement lists what it covers. Naming the cheapest policy in the public file is a figure for the comparison, not a recommendation.

Because premiums are so low, the Lifetime Health Cover loading costs less in dollars here too. A 30 % loading on the cheapest single policy adds $141 a year, against $369 in NSW. The rule itself is national: see Lifetime Health Cover loading.

Where the numbers come from

The prices are those of the PrivateHealth.gov.au product file of 1 October 2026 (data.gov.au): 448 open policies that avoid the surcharge for a single person in the Territory, from 21 insurers. The rebate and thresholds come from the ATO. Premiums change on 1 April each year. The method page lists the filters.

Questions people ask about this

Why are hospital premiums so low in the Northern Territory?

The public file gives prices, not reasons, so we do not guess. What it shows is consistent across insurers: the cheapest single policy is $39.30 a month, the next two are $40.00 and $40.95, and the median exempt policy is $108.15. Insurers set Territory premiums separately from those of other states.

How many policies avoid the surcharge in the Northern Territory?

For a single person, 448 open policies from 21 insurers in the file of 1 October 2026, counting each excess option separately. For a family the count is 847. Every hospital tier is on offer, from Basic at $39.30 a month to Gold at $129.90, all before the rebate.

Is the surcharge lower in the Territory?

No. The Medicare levy surcharge is a federal tax with the same thresholds and rates everywhere: no surcharge up to $105,000 for a single person in 2026-27, then 1 % to 1.5 %. Only the price of the cover that avoids it changes from one state to another.

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Independent publisher of Medicare levy surcharge, rebate and Lifetime Health Cover calculators for Australian taxpayers

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Surcharge and rebate figures follow the ATO tables for 2026-27; premiums come from the PrivateHealth.gov.au file and change every 1 April. Your notice of assessment and your insurer's quote are what count. General information, not tax, legal or financial advice.

Income year 2026-27, tax year 2026, last updated, ATO thresholds and PrivateHealth.gov.au premiums read on