Tax Tips
Medicare Levy
Medicare is the scheme that gives Australian Residents access to Universal Health Care. To help fund the scheme, resident taxpayers are subject to a Medicare Levy.
The Medicare Levy is calculated at 1.5% of your taxable income, however exemptions or reductions may be possible where you have a low income or are a prescribed person.
A Medicare Levy Surcharge may be imposed where Individuals and Families on higher incomes do not have an appropriate level of private hospital cover. This surcharge is calculated at 1% of your taxable income. This surcharge is in addition to the 1.5% Medicare Levy.
A taxpayer is in one of the exemption categories if:
1. |
they were a blind pensioner or they received the sickness allowance from Centrelink |
2. |
they were entitled to full free medical treatment for all conditions under defence force arrangements or Veterans' Affairs Repatriation Health Card (Gold Card) or repatriation arrangements |
3. |
they were a not an Australian resident for tax purposes |
4. |
they were a resident of Norfolk Island |
5. |
they were a member of a diplomatic mission or consular post in Australia - or a member of such a person's family and they were living with them - the taxpayer was not an Australian citizen and they do not ordinarily live in Australia |
6. |
they have a certificate from the Medicare Levy Exemption Certification Unit of Medicare Australia showing that they are not entitled to Medicare benefits because they were a temporary resident for Medicare purposes. A letter from Medicare is not sufficient. For more information on how to apply for an exemption certificate, contact Medicare Australia on 1300Â 300Â 271 or visit their website www.medicareaustralia.gov.au |
