What is the Medicare Levy Exemption?

Every Australian resident has to pay a Medicare levy that amounts to 2% of their taxable income. However, it is possible to qualify for a reduction or exemption.



First of all, if you are a nonresident for tax purposes, you do not need to pay the Medicare levy.



If you are an Australian resident, you may be able to pay a reduced Medicare levy if your income is between $21,980 and $27,475. Slightly higher thresholds apply to taxpayers who qualify for the senior Australians tax offset and the pensioner tax offset if your income if between $34,758 and $43,447.


If your taxable income is equal to or less than the lower threshold amount ($21,980) you may be exempt from the Medicare levy entirely.



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