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  • Medicare Levy Surcharge

    You may have to pay the Medicare levy surcharge (MLS) if both of the following apply:

    • you suspended or stopped private patient hospital cover for you or your family for any part of the year
    • your income for MLS purposes is above the MLS threshold – $90,000 for singles or $180,000 for families (plus $1,500 for each dependent child after the first one).

    We will work out whether you need to pay the MLS from the information you provide in your tax return and from information supplied to us by health insurance providers.

    If you (and your dependents, if you have them) were in an exemption category, then you don't have to pay the surcharge.

    You should talk to your health insurer if you want to change your policy or add other dependants to your family policy.

    The myTax instructions will help you work out whether you need to pay a Medicare levy surcharge.

    Low and middle income tax offset

    The low and middle income tax offset (LMITO) has increased by $420 for the 2021–22 income year. This has increased the maximum offset amount to $1,500. The offset applies to people with a taxable income of less than $126,000, and who are Australian residents for tax purposes.

    The low and middle income tax offset is not a cash refund. The offset can only reduce the amount of tax you need to pay to $0, and if there is any offset remaining you will not receive that amount as a cash refund.

    The amount of offset you are entitled to depends on your individual circumstances, such as your taxable income. You do not need to complete anything extra in your tax return to receive the offset – we work out the amount for you, and if you’re eligible, the offset will automatically be applied and displayed on your notice of assessment.

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      Last modified: 09 Sep 2022QC 62802