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  • Medicare levy

    The Medicare levy helps fund some of the costs of Australia's public health system known as Medicare. The Medicare levy is 2% of your taxable income, in addition to the tax you pay on your taxable income.

    You may get a reduction or exemption from paying the Medicare levy, depending on your and your spouse's circumstances. You need to consider your eligibility for a reduction or an exemption separately.

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

    The Medicare levy is collected from you in the same way as income tax. Generally, the pay as you go amount your employer withholds from your salary or wages includes an amount to cover the Medicare levy. We calculate your actual Medicare levy when you lodge your income tax return.

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    Last modified: 02 Jul 2021QC 27030