Most Australians are liable to pay the Medicare levy. The standard Medicare levy is 1.5% of your taxable income. However, this may vary according to your circumstances. Your taxable income is usually the amount you wrote at taxable income or loss on your tax return.
The Tax Office will work out your Medicare levy, including any Medicare levy reduction, from the information you provide on your tax return. If you want to work out your Medicare levy, you can use the Medicare levy calculator.
Where do you fit?
Your circumstances
What to do
Your taxable income*is equal to or less than your lower threshold amount
You do not have to pay the Medicare levy
Your taxable income*is greater than your lower and less than or equal to your upper threshold amounts
You pay only part of the Medicare levy.
Your taxable income*is over your upper threshold amount, and you are single with no dependants.
You do not qualify for a reduction.
Your taxable income*is over your upper threshold amount but you:
had a spouse (married or de facto)
had a spouse that died during the year, and you did not have another spouse before the end of the year
were a sole parent at any time during 2008-09 and you had sole care of one or more dependent children.
You may be eligible for a Medicare levy reduction based on family taxable income.
First work out your family taxable income.
Then work out your family taxable income limit.
* For the purpose of calculating the Medicare levy, your taxable income excludes the taxed element of certain superannuation lump sums received during 2008-09 while you were between 55 and 59 years old.
If you do not qualify for a reduction in the Medicare levy, you may still qualify for an exemption.
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