Hospital cover in Western Australia: what the surcharge buys instead
Perth premiums sit well below the east coast. Enter your income to see how far the cheapest exempt policy undercuts the surcharge.
The cheapest exempt cover costs less than the surcharge by
$880
Surcharge $1,750 against $870 of cover: see-u by HBF, Starter Hospital $750 Excess with Daily Co-Pay (Basic) (Basic, $750 excess), $78.86 a month before rebate.
| Income tested: $140,000 | Tier 2, 1.25 % |
| Surcharge without cover, you | $1,750 |
| Cheapest exempt policy, full premium | $946 |
| Rebate (8.038 %) | -$76 |
| Net cost of the policy | $870 |
| Income from which cover is cheaper | $105,500 |
Premiums: PrivateHealth.gov.au file of 2026-10-01, 455 open policies that avoid the surcharge for this cover type in Western Australia. Premiums change on 1 April 2027.
Prepared by Radif Partners · How the figures are built · thresholds read on ato.gov.au, premiums from privatehealth.gov.au data · not tax advice
A single Western Australian who earns over $105,000 of income for MLS purposes in 2026-27 and holds no hospital cover pays the Medicare levy surcharge. The cheapest open policy that removes it costs $78.86 a month before the rebate in the PrivateHealth.gov.au file of 1 October 2026, about 23 % less than the cheapest one in New South Wales. The next two policies, from HBF Health Limited and ahm health insurance, are within cents of it. On $140,000 the surcharge is $1,750, while the cheapest policy costs $870 after the 8.038 % rebate, and a policy at the median price of $158.90 a month costs $1,754. The table below runs the same sum at five incomes, and the calculator above lets you set your own family, age and loading.
Five incomes, one state
| Income for MLS purposes | Surcharge, full year | Cheapest policy, net | Median policy, net | Cheapest saves |
|---|---|---|---|---|
| $106,000 | $1,060 | $794 | $1,600 | $266 |
| $115,000 | $1,150 | $794 | $1,600 | $356 |
| $125,000 | $1,563 | $870 | $1,754 | $692 |
| $145,000 | $1,813 | $870 | $1,754 | $942 |
| $170,000 | $2,550 | $946 | $1,907 | $1,604 |
The left column moves through the tiers: $106,000 is just inside tier 1, $125,000 in tier 2, $170,000 in tier 3 where there is no rebate. Two effects pull in opposite directions as income rises. The surcharge grows, both because the rate climbs from 1 % to 1.5 % and because it is a percentage of a larger income. The net premium grows too, because the rebate falls from 16.079 % to nothing. In Western Australia the first effect wins at every income in the table for the cheapest policy, which is why its saving column only rises.
Income from which cover is cheaper in WA
Income from which cover is cheaper
$105,100
| Surcharge threshold | $105,000 |
| Cheapest policy, per month | $78.86 |
| Median exempt policy, per month | $158.90 |
The price ladder, tier by tier
The cheapest policy is a Basic one. If you want more, here is what each tier costs at its cheapest and at its median in the state, single cover, before the rebate.
| Tier | Cheapest from | Cheapest per month | Median per month | Policies |
|---|---|---|---|---|
| Basic | see-u by HBF | $78.86 | $85.75 | 23 |
| Basic Plus | HCi | $83.81 | $98.00 | 55 |
| Bronze | ahm health insurance | $94.70 | $108.11 | 23 |
| Bronze Plus | see-u by HBF | $94.10 | $121.50 | 94 |
| Silver | AIA Health Insurance Pty Ltd | $145.53 | $163.81 | 16 |
| Silver Plus | HCF | $131.28 | $215.30 | 203 |
| Gold | Medibank Private Limited | $214.05 | $334.50 | 41 |
Two oddities stand out. Bronze Plus is cheaper at its lowest than plain Bronze, and Silver Plus cheaper than plain Silver, because the "Plus" tiers hold far more policies and some of them are priced aggressively. The tier name says what a policy must cover at least, not what it costs, so it is worth comparing across tiers rather than within one.
What this means for a Perth household
For most single people over the threshold, the cheapest exempt policy costs less than the surcharge in WA, as it does in every state. What is particular here is the margin. On $140,000, the cheapest policy undercuts the surcharge by $880, enough to move up to a Bronze Plus policy at $94.10 a month and still pay less than the tax. Someone who joins late with a Lifetime Health Cover loading pays more, since the loading is added after the rebate: the loading page has the figures.
Couples, single parents and older members
The couple and family cells follow the same pattern at double the price: $157.72 a month for the cheapest couple policy and $157.72 for a family, while a single parent pays $119.95, a little over one and a half times the single price. A Perth couple on $130,000 and $100,000 has a combined $230,000, inside family tier 1, and would pay $2,300 of surcharge between them without cover, against $1,588 for the cheapest couple policy after the rebate. For members aged 65 or more the rebate is higher, 20.098 % at tier 1 between 65 and 69, so the net premium falls further; the page for over 65s covers the bill that would change this from April 2027.
All prices come from the file of 1 October 2026 on data.gov.au: 455 open single policies in WA from 22 insurers. Naming the cheapest policy is a figure, not a recommendation; check its Private Health Information Statement for what it covers. Thresholds and rebate: ATO.