Login or Register   |   About Us   |   Contact Us
There have been changes to the Medicare Levy and Medicare Levy Surcharge thresholds in respect of the 2015 income year.

Read on to find out the new rates and what they mean in terms of Medicare Levy reduction.

Medicare Levy

Individuals
Lower Income Limit Upper Income Limit
All taxpayers excluding those eligible for the Senior Australian Pensioner Tax Offset (“SAPTO”) $20,896 $26,121
Taxpayers below the Lower Limit are not liable to pay the levy. Those between the Lower and Upper Limits will be subject to a partial levy. Those above the Upper Limit are liable to pay the 2% levy
 Families
Lower Income Limit Upper Income Limit
All taxpayers excluding those eligible for the Senior Australian Pensioner Tax Offset (“SAPTO”) $35,261 $44,077
For families, the threshold is increased by $3,238 per dependent child
Taxpayers below the Lower Limit are not liable to pay the levy. Those between the Lower and Upper Limits will be subject to a partial levy. Those above the Upper Limit are liable to pay the 2% levy
 Medicare Levy Reduction

If you are an individual, and your taxable income < lower income limit of $20,896, you do not have to pay the Medicare levy. If your taxable income is between $20,542 and $26,121, you will pay only part of the Medicare levy. Here at Ask Us Tax, we can calculate the partial reduction for you when you lodge your tax return online with us.

Similarly, if you are an individual with a spouse and/or dependents, you may be eligible for a Medicare levy reduction if your family income is below certain thresholds – depending on the number of dependants. Here at Ask Us Tax, we can assist you with this as part of lodging your tax return with us online.

Medicare Levy Exemption

Alternatively, you may qualify for a full or part exemption from paying the Medicare levy if you were in any of the following three exemption categories:

  1. Medical: such as a blind pensioner; a person receiving sickness allowance from Centrelink or a person entitled to full free medical treatment for all conditions under defense force arrangements or Veterans’ Affairs or repatriation arrangements
  2. Foreign residents and residents of Norfolk Island or
  3. Not entitled to Medicare benefits because you hold a certificate from the Medicare levy Exemption Certification Unit of Medicare Australia.

Whether a full or partial exemption applies under each category is determined by a number of other factors such as the number of dependents. For more information contact us here.

Medicare Levy Surcharge

For the 2015 income tax year, the Medicare Levy Surcharge is income tested. Those taxpayers without adequate Private Health Insurance whose adjusted taxable income exceeds the below thresholds will be liable to pay the Medicare Levy Surcharge.

 

Singles –  Income  Surcharge
$0 – $90,000  0%
$90,001 – $105,000  1%
$105,001 – $140,000  1.25%
$140,001 and over  1.5%

 

Families – Income Surcharge
$0 – $180,000 0%
$180,001 – $210,000 1%
$210,001 – $280,000 1.25%
$280,001 and over 1.5%

To check out the other changes to the 2015 tax return for individuals click here.