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  • Medicare levy reduction for low-income earners

    The amount of Medicare levy you pay is reduced if your taxable income is below a certain threshold. In some cases, you may not have to pay the levy at all.

    The thresholds are higher for low-income earners, seniors and pensioners. If your taxable income is above the thresholds, you may still qualify for a reduction based on your family taxable income.

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

    Medicare levy reduction eligibility

    In 2020–21, you do not have to pay the Medicare levy if:

    • you are single, and
    • your taxable income is equal to or less than $23,226 ($36,705 for seniors and pensioners entitled to the seniors and pensioners tax offset).

    The amount of Medicare levy you pay will be reduced if:

    • you are single, and
    • your taxable income is between $23,226 and $29,033 (between $36,705 and $45,881 for seniors and pensioners entitled to the seniors and pensioners tax offset).

    You may still qualify for a reduction based on your family taxable income.

    If you do not qualify for a reduction in the Medicare levy, you may still qualify for a Medicare levy exemption.

    See also:

    Last modified: 01 Jul 2021QC 27031