• 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 2015–16 you do not have to pay the Medicare levy if your taxable income is equal to or less than $21,335 ($33,738 for seniors and pensioners).

    You will pay only part of the Medicare levy if your taxable income is between $21,335 and $26,668 ($33,738 and $42,172 for seniors and pensioners).

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

    In 2015–16 if you are single with no dependants and your taxable income is over $26,668 ($42,172 for seniors and pensioners), 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: 31 Aug 2016QC 27031