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  • How we work out your Medicare levy reduction

    Your eligibility for a reduction of your Medicare levy is based on your and your spouse's taxable income and your circumstances.

    Based on the information in your tax return, we will work out any reduction for you.

    If you would like to understand more about how we calculate the levy reduction, please use the following information.

    Work out your individual Medicare levy threshold

    Using Table 3, work out the Medicare threshold that applies to you.

    Table 3 - Medicare levy thresholds for an individual

    Category

    Lower threshold

    Upper threshold

    If you were entitled to the seniors and pensioners tax offset  

    $35,418

    $44,272

    All other taxpayers

    $22,398

    $27,997

    If you have a spouse, you may not get the seniors and pensioners tax offset even if you meet all the eligibility conditions as the amount of the tax offset is based on your individual rebate income, not your combined rebate income. If you do not get the offset, merely being eligible for it will not entitle you to a Medicare levy reduction.

    For this section, your taxable income excludes the taxed element of certain superannuation lump sums you received during 2018–19 if you had reached your preservation age and were under 60 years old (see Reduced taxable income to take account of certain superannuation lump sums).

    Work out where your circumstances fit

    Using Table 4, work out your circumstances and how they apply to the calculation of the levy.

    Table 4 - Where do you fit?

    Your circumstance

    What to do

    Your taxable income is equal to or less than your lower threshold amount.

    You do not have to pay the Medicare levy.

    Your taxable income is greater than your lower threshold amount and less than or equal to your upper threshold amount, and you are single with no dependants.

    You pay only part of the Medicare levy. We will work it out.

    Go to Medicare levy exemption to see if you qualify for an exemption.

    Your taxable income is over your upper threshold amount, and you are single with no dependants.

    You do not qualify for a reduction.

    Go to Medicare levy exemption to see if you qualify for an exemption.

    Your taxable income is greater than your lower threshold amount but you:

    • had a spouse
    • had a spouse who died during 2018–19, and you did not have another spouse in 2018–19
    • were entitled to an Invalid and invalid carer tax offset in respect of your child, or
    • at any time during 2018–19 had sole care of one or more dependent children or students.

     

    You may be eligible for a Medicare levy reduction based on family taxable income.

    • to work out your family taxable income, use worksheet 1
    • and to work out your family taxable income limit, use worksheet 2.

     

      Last modified: 26 Jun 2019QC 59100