New financial year health insurance checklist
Thinking of joining Frank to avoid the MLS?
Is it too late to avoid MLS this financial year?
If you're a high-income earner and don't have hospital cover, you'll have to pay MLS for any days you weren't covered by eligible hospital insurance. Joining before 30 June (2027) may reduce what you owe, but it won't remove MLS already accrued.
Why does 30 June matter?
30 June is the end of the financial year. If you don’t hold eligible hospital cover as a high-income earner, you'll be up to pay the MLS if your income is above the MLS threshold that’s $105K for singles and $210K for couples and families this financial year (2026-27).
If you’ve recently turned 31, 30 June is also a key deadline for Lifetime Health Cover (LHC). If you don't have eligible hospital cover by 1 July following your 31st birthday, LHC loading will apply if you do decide to take it out later. This is an additional 2% on your hospital premiums for each year you’ve been without cover after this date. LHC loading is capped at 70% and remains for ten continuous years before it is removed.
-
Step 1: Take out Frank hospital coverFind coverTake out Basic Accident Boost Hospital or a higher level of hospital cover. It only takes around 10 minutes to sign up online. If you have an accident after your cover starts, hospital treatment required because of the accident is covered from your join date, with no waiting period. Conditions apply refer to the cover fact sheet.
-
Step 2: Set up direct debitLog in to the member areaSet up your payments and we'll take care of the rest. Some services have waiting periods, which means you'll need to serve those waits before you can claim benefits. Simply log in to the member area or app to manage your payment details.
-
Step 3: You're covered for MLSLearn more about taxYou'll have eligible hospital cover in place for the next financial year from 1 July. Just keep in mind that you’ll still need to pay MLS for any days in the current financial year you didn’t have hospital cover. This will show up in your tax statement at the end of the financial year. Frank sends your cover details to the ATO in July, so they'll be ready to go and pre-filled for your tax return in myTax.
Cheaper than your matcha
Frank's Basic Accident Boost Hospital cover is cheaper than most people's daily matcha fix and offers Accident Protection from day one, with upgraded cover for hospital treatment required as the result of an accident. Want more services included on your hospital cover? Frank offers cover choices for the essentials right through to extensive hospital cover.
How much MLS will joining Frank before 30 June actually save?
MLS is calculated daily. Holding eligible hospital cover for part of the financial year can reduce the number of days MLS applies. The table below is an illustrative example only and should not be relied on as tax or financial advice.
If you’re income is above the MLS threshold taking out eligible hospital cover can reduce the number of days MLS applies for the current financial year. If eligible hospital cover starts before 1 July and is maintained for the full next financial year MLS won't apply.
| Join date | Days remaining in financial year | Estimated MLS reduction* |
|---|---|---|
| 1 May | 61 days | $183 |
| 1 June | 30 days | $90 |
| 20 June | 10 days | $30 |
| 1 July | 0 days |
$0 this financial year, but full exemption next year |
*Note: Illustrative only. This example is based on a single person earning $110,000 and assumes the Tier 1 MLS rate of 1%. Actual MLS outcomes depend on personal circumstances, income for surcharge purposes, MLS tier, household status, eligible hospital cover and the number of days covered. This information is general in nature and is not tax or financial advice. Use the ATO’s Income Tax estimator or seek professional advice for personal tax guidance.
What am I covered for if I join Frank?
Regardless of when you join Frank, waiting periods apply, and some benefits may be available sooner than others, depending on the type of cover and treatment.
Hospital cover:
- Accidents (accident must occur after joining and treatment must be sought within 48 hours of sustaining the injury) and emergency ambulance. Available from your join date with no waiting periods.
- Psychiatric, rehabilitation, palliative care and other hospital treatments not listed below: a 2‑month waiting period applies.
- Pregnancy and birth: a 12‑month waiting period applies.
- Pre-existing hospital conditions: a 12‑month waiting period applies.
For a full breakdown of waiting periods and what's covered, refer to the cover fact sheet or Frank's waiting period guide.
Frequently Asked Questions about EOFY and MLS
No. If you're a high-income earner taking out hospital cover before 30 June won't completely exempt you from paying Medicare Levy Surcharge (MLS) for the current financial year if you've spent part of the year without eligible hospital cover.
- The MLS is calculated daily. That means you'll only pay MLS for the days you didn't have eligible hospital cover, and you won't pay it for the days you were covered.
- If you join before 30 June, you may reduce the amount of MLS you pay at tax time. But it won't remove any MLS you've already accumulated for days you weren't covered during the financial year.
- If you've held eligible hospital cover for the entire financial year, you won't need to pay MLS.
The bigger benefit of joining before 1 July is that you'll have eligible hospital cover in place from the start of the next financial year, helping you avoid MLS for the full year ahead (provided you maintain your cover). Remember that extras-only cover won’t help you avoid the MLS.
You'll be covered for eligible hospital treatment needed as the result of an accident from day one, as long as the accident happens after you join.
For most other hospital treatments, you'll need to serve a 2‑month waiting period. Pre‑existing conditions and pregnancy and birth services have a 12‑month waiting period.
Yes. 30 June is a deadline worth knowing about. If you don't have eligible hospital cover by 1 July following your 31st birthday, you could pay a 2% LHC loading on your hospital premiums for every year you put it off (up to a maximum of 70%). The LHC loading applies for ten continuous years before it’s removed. Learn more about LHC loading
Yes. If you're a high-income earner and join Frank on 1 July with eligible hospital cover, you'll start the financial year off without having to worry about the MLS. You’ll need to keep your hospital cover for the full financial year to avoid paying it entirely.
Any Frank hospital cover can help you avoid the Medicare Levy Surcharge (MLS) if your a high-income earner. The lowest cost option is Basic Accident Boost Hospital.
Eligible hospital cover for MLS purposes must have not have an excess of more than $750 for singles or $1,500 for families. Extras-only cover doesn't count for MLS purposes.
You can't go back and avoid MLS for the financial year that's already ended. If you were above the income threshold and didn't have eligible hospital cover, you'll pay MLS for the days you weren't covered. This will show up on your tax notice of assessment and pre-filled by the ATO in myTax. If you’re a high income earner the best time to act is now, so you're covered for the rest of this financial year and future ones if you keep your hospital cover.
