Guide to Medicare levy

Category 1: Medical

You are in this exemption category and can claim a full or half exemption if:

one of the following applied during all or part of the year

you were a blind pensioner
you received sickness allowance from Centrelink
you were entitled to full free medical treatment for all conditions under Defence Force arrangements or Veterans' Affairs Repatriation Health Card (Gold Card) or repatriation arrangements

during the period you met that condition, you also met one of the following conditions.

Condition

Exemption that applies

You had no dependants.

Full

Each of your dependants (including your spouse if you had one) either:

was in one of the exemption categories, or

had to pay the Medicare levy.

Full

You had dependent children who were not in an exemption category but who were also dependants of your spouse, and your spouse either:

had to pay the Medicare levy, or

met at least one of the category 1 medical conditions and you have completed a family agreement stating that your spouse will pay the half levy for your joint dependants.

Full

You had at least one dependant (for example, a spouse) who:

was not in an exemption category, and

did not have to pay the Medicare levy (for example, because their taxable income was below the lower Medicare levy threshold.

Half

You were single or separated and you:

had a dependent child who was not in a Medicare levy exemption category, and

were entitled to family tax benefit Part A or the rental assistance component of family tax benefit Part A for that child, and

were in a shared-care arrangement.

Then exemption from the Medicare levy is on the following basis:

Number of days that you have care of your dependent child.

Number of days that you do not have care of your dependent child.

Half
Full

You had a spouse who met at least one of the category 1 medical conditions and you had a child who:

was not in an exemption category, and

was dependent on both of you.

In this case, either you or your spouse can claim a full exemption and the other can claim a half exemption by completing a family agreement.

Full or Half

Medicare levy - home

Family agreements

You may only complete a family agreement if both you and your spouse would have to pay the Medicare levy were it not for your exemption-category status. You do not need to send this agreement to us. Keep it with your records.

Format for family agreement

We agree that the half Medicare levy exemption for our dependants for the year ________ will be claimed as follows.

Name of person claiming the full exemption: ________________

Name of person claiming the half exemption: ________________

Your signature: ________________

Your spouse's signature: ________________

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Sections within Medicare levy exemption

Last Modified: Monday, 25 March 2013