Medicare Levy

Medicare Levy

Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, most taxpayers pay a Medicare levy of 2.0% of their taxable income.

From 1 July 2014 the Medicare levy rose from 1.5% to 2.0%

  • Your Medicare levy is reduced if your income is below a certain threshold and in some cases you may not have to pay the levy at all. The thresholds are higher for seniors. If your income is above the thresholds, you may still qualify for a reduction based on your family taxable income.
  • You may be exempt from paying the Medicare levy if you’re a foreign resident, a resident of Norfolk Island, not entitled to Medicare benefits, or you meet certain medical requirements. If you’re entitled to an exemption you need to tell us on your tax return.
  • You have to pay the Medicare levy surcharge (MLS) if your income for Medicare levy surcharge purposes is above a certain threshold and you (or any of your dependents) don’t have appropriate private patient hospital cover. The surcharge is in addition to the Medicare levy.

You can use the Medicare levy calculator to work out your Medicare levy here.

Access more information regarding the Medicare levy on the ATO website here.