Medicare levy - a growing tax

Medicare provides Australian residents access to health care. It is partly funded by taxpayers, who pay a Medicare levy of 2 per cent of their taxable income.

In recent years, the Medicare levy has risen from 1 per cent to 2 per cent, and in addition, it is now calculated on fringe benefits, which did not used to appear on group certificates.

Medicare levy is reduced if taxable income is below a certain threshold. Note that some taxpayers are exempt from the Medicare levy because of their foreign earnings status, or the type of health care which is provided to them.

If your taxable income is above the thresholds, you may still qualify for a reduction, based on your family taxable income.

The Australian Taxation Office website outlines here whether you can qualify for a Medicare levy reduction.

For more information, we advise you to make an appointment with your nearest TaxAssist Accountant for a free, initial consultation.

Last updated: 8th February 2017