MEDICARE LEVY ACT 1986

SECTION 8D   LEVY SURCHARGE - PERSON WHO IS MARRIED DURING WHOLE OR PART OF A FINANCIAL YEAR  

8D(1)  
This section applies to a person during a period if during the whole of the period:


(a) the person is a married person; and


(b) the person or at least one of the person ' s dependants (other than a dependant who is, or would, apart from subsection 251U(2) of the Assessment Act, be taken to be, a prescribed person) is not covered by an insurance policy that provides private patient hospital cover; and


(c) the person is not, or is taken under section 251VA of the Assessment Act not to be, a prescribed person.

Note 1:

Subsection 251R(2) of the Assessment Act treats certain persons who are not married as if they were married.

Note 2:

For dependant see sections 251R and 251V of the Assessment Act.

Note 3:

For prescribed person see section 251U of the Assessment Act.

8D(2)  
For the purposes of paragraph (1)(b), a person to whom section 251VA of the Assessment Act applies is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover.

8D(3)  
The amount of the levy that, apart from this section, would have been payable by a person under this Act for the year of income is to be increased by the amount of 1% of the person ' s taxable income if:


(a) this section applies to the person for the whole of the year of income; and


(b) the sum of the person ' s income for surcharge purposes and the person ' s spouse ' s income for surcharge purposes exceeds the person ' s family tier 1 threshold; and


(c) the person ' s income for surcharge purposes exceeds $22,398.

8D(4)  
The amount of the levy that, apart from this section, would have been payable by a person under this Act for the year of income, being a person to whom this section applies for only some of the days in the year of income, is to be increased by the amount worked out using the formula:


(1% of the person ' s
taxable income)
× Number of those days
Number of days in the
year of income

if:


(a) both of the following conditions are met if the person is married for the whole of the year of income:


(i) the sum of the person ' s income for surcharge purposes and the person ' s spouse ' s income for surcharge purposes exceeds the person ' s family tier 1 threshold;

(ii) the person ' s income for surcharge purposes exceeds $22,398; or


(b) the person ' s income for surcharge purposes exceeds the person ' s family tier 1 threshold, if the person is married for only some of the year of income.

8D(4A)  


Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

8D(4B)  


Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

8D(5)  


In this section:

income for surcharge purposes
, in relation to the person ' s spouse, includes any share in the net income of a trust estate:


(a) to which the spouse is presently entitled as a beneficiary; and


(b) in respect of which the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act.




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