Question by N7 Education

The Medicare Levy Surcharge (MLS) is a 1-2% levy paid by Australian taxpayers who do not have private hospital cover and who earn above a certain income. The current income threshold is AUD$90,000 for singles and AUD$180,000 for couples / families (2020-2021 financial year). Once Australians earn above these thresholds within a financial year, they must pay the MLS.

(a).

Given an annual income called INCOME, a boolean flag for having private hospital cover or not called PRIVATE and another boolean flag for being single or not called SINGLE, write pseudocode to output True if eligible for the MLS or False otherwise. For example, a single person (SINGLE = true) who doesn’t have private health insurance (PRIVATE = false) and is earning AUD$120,000 (INCOME = 120000) annually must pay the MLS (output True)

[7]

To make the MLS more socially equitable, a range of income tiers determine the relevant MLS percentage to apply to each income. MLS payable is calculated according to the tiers indicated below.

(b).

Given the same INCOME parameter described in Part (a) as well as an array called SURCHARGE containing (in ascending order) the MLS percentages for each tier [0, 0.01, 0.0125, 0.015], write pseudocode to determine the amount of MLS dollars owing for a single person who doesn’t have private health insurance in the 2020-2021 financial year.

[8]

To improve both code maintainability and extensibility, hard coded tier threshold numbers will instead reference a 2D array called MLS_THRESHOLD which is defined below. For example, MLS_THRESHOLD[0][2] provides the number 140000.

(c).

Given the same INCOME and SINGLE parameters described in Part (a) as well as both the SURCHARGE data described in Part (b) and MLS_THRESHOLD data above, extend your solution for Part (b) to more generally determine the amount of MLS dollars owing for anybody (both single and non-single people) who do not have private health insurance.

[5]

N7 Education

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