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The Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and don't have an appropriate level of hospital cover.he Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and don't have an appropriate level of hospital cover.
The Medicare levy is imposed on all Australian residents who have access to public health care. Foreign citizens-who do not have public health benefits-do not have to pay the levy, as they do not benefit from the system.The amount you must pay is determined by your personal income.As of July 2014, taxpayers are charged 2 per cent of their annual income.he levy pays for the Medicare system, a public health insurance programme that ensures all Australian citizens receive a basic level of coverage for routine doctor appointments, emergency visits and accidents.