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  • Before you lodge

    Before lodging your clients' tax returns:

    • consider residency and foreign income
    • use the pre-filling service
    • ensure work-related expense claims are correct
    • help prevent delays in processing by checking for common errors.

    For example, processing may be delayed if there are incorrect or incomplete details in your clients' returns.

    If your client is claiming the Medicare levy exemption, they will need to obtain a Medicare Entitlement Statement from Services Australia before lodging their tax return.

    Your client will need to complete the application form each year that they wish to claim the exemption.

    If your client does not qualify for an exemption, they will be subject to a Medicare levy of 2% of their taxable income, regardless of whether or not they have private health insurance.

    In addition to the Medicare levy, your client may have to pay the Medicare levy surcharge if they do not have the appropriate private patient hospital cover for any period during the financial year and they earn above a certain income.

    The net medical expenses tax offset is not available to claim in the 2019–20 and later income years. Legislation passed in 2014 abolishes this offset from 1 July 2019.

    Follow these links to find out what else to consider before lodging your clients' tax returns.

    See also:

    Last modified: 28 May 2020QC 45696