ato logo
Search Suggestion:

Category 1: Medical

Check if you meet the conditions for the Medical exemption category.

Last updated 25 June 2019

You are in this exemption category and can claim a full or half exemption if:

  • one of the following applied during all or part of 2018–19  
    • you were a blind pensioner
    • you received sickness allowance from Centrelink
    • you were entitled to full free medical treatment for all conditions under defence force arrangements or Veterans' Affairs Repatriation Health Card (Gold Card).
  • during the period you met that condition, you also met one of the following conditions.
Table 2 - Additional conditions – exemption that applies

Additional condition met

Exemption that applies

You had no dependants.

Full

Each of your dependants (including your spouse if you had one) either:

  • was in one of the exemption categories, or
  • had to pay the Medicare levy.

 

Full

You had dependent children who were not in an exemption category but who were also dependants of your spouse, and your spouse either:

  • had to pay the Medicare levy, or
  • met at least one of the Category 1: Medical conditions and you have completed a family agreement stating that your spouse will pay the half levy for your joint dependants.

 

Full

You had at least one dependant (for example, a spouse) who:

  • was not in an exemption category, and
  • did not have to pay the Medicare levy (for example, because their taxable income was below the lower Medicare levy threshold), see table 3.

 

Half

You were single or separated and you:

  • had a dependent child who was not in a Medicare levy exemption category, and
  • were entitled to FTB Part A or the rental assistance component of FTB Part A for that child, and
  • were in a shared-care arrangement.

Then exemption from the Medicare levy is on the following basis:

  • for the days that you had care of your dependent child

 

Half

You were single or separated and you:

  • had a dependent child who was not in a Medicare levy exemption category, and
  • were entitled to FTB Part A or the rental assistance component of FTB Part A for that child, and
  • were in a shared-care arrangement.

Then exemption from the Medicare levy is on the following basis:

  • for the days that you did not have care of your dependent child

 

Full

You had a spouse who met at least one of the Category 1: Medical conditions and you had a dependent child who:

  • was not in an exemption category, and
  • was dependent on both of you.

In this case, either you or your spouse can claim a full exemption and the other can claim a half exemption by completing a family agreement.

Full or Half

Family agreements

A family agreement is a written agreement signed by you and your spouse. You complete a family agreement only if both you and your spouse would have to pay the Medicare levy were it not for your exemption category status. You do not need to send this agreement to us. Keep it with your records. The agreement must contain:

  • the statement: 'We agree that the Medicare levy exemption in respect of our dependants for 2018–19 will be claimed as follows.'
  • name of person claiming the full exemption
  • name of person claiming the half exemption
  • your signature
  • your spouse's signature.

The agreement must be signed before the date the person claiming the full exemption lodges their tax return, unless the Commissioner allows further time.

QC59100