What is the Medicare Levy?

Medicare Levy

 

The Medicare Levy is the amount paid by Australian taxpayers that partially funds Medicare access for residents, typically, calculated at 2% of your taxable income. It is reduced accordingly when your taxable income falls below a certain threshold. In some cases, you are exempt from paying the Medicare levy at all.

In the 2015-2016 financial year:

  • Do not pay the Medicare levy if your taxable income is less than or equal to $21,335 ($33,738 for seniors and pensioners).
  • Pay only part of the Medicare levy if your taxable income is between $21,335 and $26,668 ($33,738 and $42,172 for seniors and pensioners).
  • Pay the full Medicare levy amount if your taxable income is above $26,668 ($42,172 for seniors and pensioners).

 

If your taxable income is more than $26,668 ($42,172 for seniors and pensioners), you could still qualify for a Medicare levy reduction. This is dependent on your family taxable income, which consists of:

  • The combined taxable income of you and your spouse, OR
  • Your taxable income if you were a sole parent for the year

In the 2015-2016 financial year:

  • Pay only part of the Medicare levy if your family taxable income is equal to or less than $45,001 ($58,707 for seniors and pensioners), PLUS an additional $4,132 per each dependent child you have.

Leave a Reply

Your email address will not be published. Required fields are marked *