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  • Category 1: Medical exemption from Medicare levy

    If you are in this exemption category, you can claim a full or half exemption from Medicare levy. For that, you will have to meet both of the following conditions:

    • 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)
    • 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) 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 half of the 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. 

    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 AExternal Link 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:

    • for the days that you had care of your dependent child
    • For the days that you did not have care of your dependent child. 

     












    Half

    Full

    You had a spouse who met at least one of the Category 1 circumstances and you had a dependent 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

    Family agreement

    A family agreement is a written agreement signed by you and your spouse. You complete a family agreement only 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 unless requested. Failure to keep the agreement can cause both of you to become liable for the Medicare levy.

    The agreement must contain:

    • the statement – 'We agree that the Medicare levy exemption in respect of our dependants for the 2017-18 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.

    The agreement must be signed before the date of the person claiming the full exemption lodges their tax return, unless the Commissioner of Taxation allows further time.

    See also:

    Last modified: 02 Aug 2018QC 27036