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  • Medicare levy reduction for low-income earners

    Your Medicare levy 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 seniors and pensioners. If your taxable income is above the thresholds, you may still qualify for a reduction based on your family taxable income.

    Can I qualify for a Medicare levy reduction?

    In 2016–17 you do not have to pay the Medicare levy if your taxable income is equal to or less than $21,655 ($34,244 for seniors and pensioners entitled to the seniors and pensioners tax offset).

    You will pay only part of the Medicare levy if your taxable income is between $21,655 and $27,068 ($34,244 and $42,805 for seniors and pensioners entitled to the seniors and pensioners tax offset).

    What if I don't qualify for a Medicare levy reduction?

    In 2016–17 if you are single with no dependants and your taxable income is over $27,069 ($42,806 for seniors and pensioners entitled to the seniors and pensioners tax offset), you do not qualify for a Medicare levy reduction.

    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.

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    Last modified: 29 Jun 2017QC 27031