ato logo

Medicare levy reduction or exemption

Last updated 27 June 2018

This section is about whether you qualify for a Medicare levy reduction or exemption. Australian residents for tax purposes are subject to a Medicare levy of 2.0% of their taxable income unless they qualify for a reduction or exemption.

If you were not an Australian resident for tax purposes for the whole of 2017–18, you are exempt from the Medicare levy. For the meaning of Australian resident for tax purposes, see Work out your tax residency status for tax purposes.

A Medicare levy reduction is based on your taxable income. A Medicare levy exemption is based on specific categories. You need to consider your eligibility for a reduction or an exemption separately.

For more information, see:

For further help about this section, use the left hand side table of contents.

Completing this section

  1. Show the Number of dependent children and students.
    For more information, see Working out your number of dependent children.
  2. Indicate if you were in one of the exemption categories at any time during 2017–18.
    If Yes, go to step 3.
    If No, go to step 6.
  3. Enter the number days you qualify for full exemption, in Full 2% levy exemption – number of days.
  4. Enter the number days you qualify for half exemption, in Half 2% levy exemption – number of days.
  5. If you entered one or more days in Full 2% levy exemption – number of days, answer the question Were you a temporary resident for Medicare purposes and have a Medicare entitlement statement from the Department of Human Services (now known as Services Australia)?
  6. Go to the Medicare levy surcharge section.