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  • Medicare levy exemption

    You may qualify for an exemption from paying the Medicare levy if you were in any of the following three exemption categories at any time in the year.

    These categories are:

    If you have any dependants, your qualification for an exemption depends on their circumstances as well as your own.

    Work it out

    If you want to work out your Medicare levy, you can use the Medicare levy calculatorThis link opens in a new window.

    For assistance with completing your tax return, see M1 Medicare levy reduction or exemption.

    End of work it out

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

    Category 2: Foreign residents of Norfolk Island

    If you were a foreign resident or a resident of Norfolk Island for the full year, you can claim a full exemption for the year (365 days). If you were a foreign resident or a resident of Norfolk Island for only part of the year, you can claim a full exemption for that period if: you did not have any dependants for that period, or all your dependants were in an exemption category for that period.

    Category 3: Not entitled to Medicare benefits

    You can claim a full exemption for any period for which you have a statement from the Medicare Entitlement Statement Unit of the Department of Human Services showing you were not entitled to Medicare benefits because you were a temporary resident for Medicare purposes and either: you did not have any dependants for that period, or all your dependants were in an exemption category for that period.

    Dependants for Medicare levy exemption

    For the Medicare levy exemption (but not the reduction), dependant means an Australian resident you maintained who was: your spouse, your child under 21 years old, or your child, 21 to 24 years old, who was receiving full-time education at a school, college or university and whose adjusted taxable income for the period you maintained the child was less than the total of $282 plus $28.92 for each week you maintained them.

  • Last modified: 24 Sep 2014QC 27035