- check client combined income for medicare levy surcharge: married? and any dependent child? compared with Medicare levy surcharge threshold (i.e $180,000 + $1,500 per child = $181,500). --> be liable for MLS or not. Note: The income for MLS purpose will include any fringe benefit, reportable super contributions, investment losses etc.
- For tax purpose, it is recommended that you take up private health insurance- with hospital cover (ancillary is not full cover for ATO MLS purpose) for your whole family including your child to avoid paying MLS at year end if you don’t have the private health fund hospital cover
Hope this helps