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  • Medicare levy exemption letter

    We may send letter about your Medicare levy exemption claim on your tax return if we receive information that suggests you may not be eligible for an exemption.

    We send these letters to your postal address.

    On this page:

    Eligibility for Medicare levy exemption

    To be eligible for the Medicare levy exemption you must be in one of the following categories:

    • Category 1 – Medical
      • You were a blind pensioner.
      • You received a sickness allowance from Services Australia.
      • You were entitled to full free medical treatment for all conditions under defence force arrangements or under Veterans’ Affairs Repatriation Health Card (Gold Card) or repatriation arrangements.
       
    • Category 2 – Foreign residents
      • You were not an Australian resident for tax purposes.
      • If you were a foreign resident for tax purposes for part of the year you can claim an exemption for that period if you did not have dependants for that period or all your dependants were in an exemption category for that period.
      • Part-year tax-free threshold label A2 completed on your tax return.
       
    • Category 3 – You have been issued a Medicare Entitlement Statement from Services Australia stating that you are not entitled to Medicare benefits and either
      • you did not have any dependants for that period
      • all your dependants were also in an exemption category for that period.
       

    You also qualify for a full exemption under this category if:

    • you were a member of a diplomatic mission or consular post in Australia (or a member of such a person's family and you were living with them)
    • you were not an Australian citizen
    • you don't ordinarily live in Australia and you either
      • did not have any dependants for that period
      • all your dependants were in an exemption category for that period.
       

    If you have any dependants, their circumstances are also important when working out whether you are eligible for the Medicare levy exemption.

    Receiving your letter

    We will send the letter to the most recent postal address on your record.

    Your letter will show you the details you declared in your tax return compared to the information we have.

    If you've received a data-matching letter from us and you have a question, we have a dedicated phone line you can use. You can phone us on 1300 768 912 and select option 3 between 8.00 am and 6.00 pm, Monday to Friday.

    What you need to do

    Review the information in your letter. Below is a sample of the summary of proposed changes to your tax return provided on the letter. Keep in mind that your letter will contain your own details and may not look exactly like this.

    Summary of proposed changes to your <CCYY> tax return

    Tax return item and description

    Original value

    New value

    M1 Full levy exemption – number of days

    365

    0

    Claim type

    C

    n/a

    Once you have compared the information in your letter with your records, you can let us know:

    If you agree

    If you agree with our information you don’t need to do anything. We will send you an amended notice of assessment after 28 days.

    Once you receive your amended notice of assessment you'll need to pay and amounts you owe us by the due date.

    Your amended notice of assessment will be sent to your myGov Inbox if you have a myGov account.

    If you disagree

    If you disagree with the details reported, you will have 28 days to respond. You need to provide supporting documents as evidence.

    You can either send us your details by:

    • mail, to:

    Australian Taxation Office
    PO BOX 3543
    Albury  NSW  2640

    Be aware, the internet is not a secure environment. We do not control the path of inbound and outbound emails. If you choose to communicate with us by email the privacy of your personal information can't be guaranteed.

    Your response will be assessed and once finalised you will receive an amended notice of assessment. You may be contacted by the case officer reviewing your supporting documents if we require additional information.

    If we don't receive a response from you in 28 days, we will automatically amend your tax return to align to the information we have. You will then receive an amended notice of assessment.

    Supporting documents

    We may ask you to provide one of the following supporting documents as evidence of your exemption.

    • A Medicare Entitlement Statement from Medicare Australia showing that you were not entitled to Medicare benefits for the relevant financial year, because you were a temporary resident for Medicare purposes and either:    
      • you did not have any dependants for that period
      • all your dependants were in an exemption category for that period.
       
    • Evidence that you received a sickness allowance from Centrelink.
    • Evidence you are entitled to full free medical treatment for all conditions under Defence Force arrangements or the Veterans’ Affairs Repatriation Health Card (Gold Card) or repatriation arrangements.

    See also:

    Last modified: 09 Oct 2020QC 43493