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Medicare levy reduction

Last updated 27 June 2018

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

We will work out any reduction for you based on the information in your tax return.

Table 1 - Medicare levy thresholds for an individual

Category

Lower threshold

Upper threshold

If you were entitled to the seniors and pensioners tax offset  

$34,758

$43,447

All other taxpayers

$21,980

$27,475

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 2017–18 while you were aged between your preservation age and 59 years old (see Reduced taxable income to take account of certain superannuation lump sums).

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 the year, and you did not have another spouse before the end of the year, or
  • are entitled to an Invalid and invalid carer tax offset in respect of your child, or
  • at any time during 2017–18 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

 

QC55656