The Medicare Levy, typically calculated at 2% of your taxable income, is the amount paid by Australian taxpayers that partially funds Medicare access for residents. 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 2017-2018 financial year you are:
- Not required to pay the Medicare levy if your taxable income is less than or equal to $21,980 ($34, 758 for seniors and pensioners)
- Required to pay only part of the Medicare levy if your taxable income is between $21,980 and $27,475 ($34,758 and $43,447 for seniors and pensioners)
- Must 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 $27,476 ($43,448 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