Medicare levy surcharge for single parents: the family line, one income
Enter your income for MLS purposes and your dependent children: the tool tests you on the family threshold, as the rules do for a sole parent.
Medicare levy surcharge, 2026-27
$2,300
Tier 1 rate of 1.00 % on 365 days without cover.
| Income tested for the tier | $230,000 |
| Thresholds (base / tier 1 / tier 2) | $211,500 / $247,500 / $329,500 |
| You | $2,300 on $230,000 |
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 parent with at least one MLS dependent child is not tested on the single threshold of $105,000. PrivateHealth.gov.au states that single parents, like couples, are subject to the family tiers, and the M2 instructions list the exemption for a person who was single all year with a dependent child all year: no surcharge while income for MLS purposes stays at or under $210,000 for 2026-27, plus $1,500 for each dependent child after the first. Because there is no spouse, that line is compared with the parent's own income only, which gives a sole parent twice the room of a single person without children. A parent on $170,000 with one child pays nothing, where a single person on the same income would pay $2,550 without cover. Above the family line the usual rates apply, 1 % to 1.5 %, on taxable income and fringe benefits, and every dependent child also needs hospital cover to avoid them.
The same income, three situations
The family line makes a large difference for a sole parent. The table compares a single person without children with a single parent of one and of three dependent children, at the same incomes for MLS purposes, without hospital cover for the whole of 2026-27.
| Income for MLS purposes | Single, no children | Single parent, 1 child | Single parent, 3 children |
|---|---|---|---|
| $120,000 | $1,200 | $0 | $0 |
| $170,000 | $2,550 | $0 | $0 |
| $211,000 | $3,165 | $2,110 | $0 |
| $230,000 | $3,450 | $2,300 | $2,300 |
| $260,000 | $3,900 | $3,250 | $3,250 |
Between $105,000 and $210,000 the single person pays and the single parent does not. Above the family line the parent pays the family tier rates on their own income: on $230,000 with two children, tier 1 at 1 %, or $2,300 for the year.
Which children count
The child must be an Australian resident you contributed to maintaining, under 21, or 21 to 24 and in full-time study. You maintain a child if you live together, give them food, clothing and lodging, help pay their living, medical or education costs, or pay child support for them, even when they do not live with you. A foster child does not count. A stepchild does, but a single parent by definition has no current spouse whose children could be counted.
The rule that surprises separated parents is the equal dependant rule. If the parents lived apart for all or part of the year and the child was a dependant of each, the ATO treats the child as an equal dependant of each parent, irrespective of the number of nights in each home. Receiving Family Tax Benefit Part A does not change that for the surcharge. Both parents may therefore use the family threshold, each on their own income.
Test your own income
Medicare levy surcharge, 2026-27
$2,150
| Income tested for the tier | $215,000 |
| Thresholds (base / tier 1 / tier 2) | $210,000 / $246,000 / $328,000 |
| You | $2,150 on $215,000 |
Years with a change
When you become or stop being a sole parent during the year, for example when a separation happens or a youngest child turns 21 and leaves study, the M2 instructions split the year. For days with a spouse or a dependent child, you are liable only if your own income for MLS purposes is above the family threshold and someone in the family lacked cover. For days with neither spouse nor child, the single threshold of $105,000 applies. Your status on 30 June then decides whether your rate is read from the family tiers with combined income, if you had a spouse, or from the single tiers with your own income, if you were single.
On the return itself, the number of dependent children you had during the year goes at question IT8, label D, and the days for which you do not have to pay the surcharge at question M2, label A. The ATO uses both to choose the threshold. An older child who is covered as a dependant on your single parent policy is not liable for the surcharge personally, as long as they have no spouse or dependants of their own.
The calculator on this page assumes the same situation for the whole year. For a year with a change, run it twice, once per period, and keep the days of each.
The price of avoiding it
A single parent policy covers one adult and the children, and counts as a policy for more than one person, so its excess can go up to $1,500 and still avoid the surcharge. In the PrivateHealth.gov.au file of 1 October 2026, 720 open single parent policies qualify in NSW and the ACT; the cheapest costs $156.05 a month before the rebate and the median $336.69. Western Australia is cheaper, from $119.95. Just above the line, on $211,000 with one child, the surcharge would be $2,110 against $1,572 for that cheapest NSW policy after the tier 1 rebate of 16.079 %. The home calculator sets the two side by side for your state.
Sources
Family tiers for single parents: PrivateHealth.gov.au. Exemption categories and changes during the year: ATO, M2 Medicare levy surcharge 2026 (tax return instructions). Equal dependants, maintenance, child support and foster children: ATO, Family and dependants for Medicare levy surcharge purposes. Thresholds: ATO, Medicare levy surcharge income, thresholds and rates (updated 22 June 2026).