| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012593373090
Ruling
Subject: Medicare levy exemption
Question
Are you exempt from the Medicare levy?
Answer
No.
This ruling applies for the following period(s)
Year ended 30 June 2013
Year ending 30 June 2014
The scheme commences on
1 July 2012
Relevant facts and circumstances
· You are a citizen of a country that has reciprocal medical benefits with Australia.
· You are unable to obtain a Medicare levy exemption certificate from Medicare.
· You are a resident of Australia.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 251T
Income Tax Assessment Act 1936 Section 251U
Reasons for decision
Section 251T of the Income Tax Assessment Act 1936 (ITAA 1936) provides that the Medicare levy is not payable by a prescribed person; which is itself defined in section 251U of the ITAA 1936. You will be a prescribed person if you:
1. are a blind pensioner or you receive the sickness allowance from Centrelink
2. are entitled to full free medical treatment for all conditions under defence force arrangements or Veterans' Affairs Repatriation Health Card (Gold Card) or repatriation arrangements
3. are not an Australian resident for tax purposes
4. are a resident of Norfolk Island
5. are a member of a diplomatic mission or consular post in Australia - or a member of such a person's family and you were living with them - and you were not an Australian citizen and you do not ordinarily live in Australia
6. have a certificate from the Medicare Levy Exemption Certification Unit of Medicare Australia showing that you are not entitled to Medicare benefits because you were a temporary resident for Medicare purposes. A letter from Medicare is not sufficient.
The exemption of relevance to you is the sixth category relating to exemption certificates. This is the manner in which the Health Minister provides certification for exemption from the levy in accordance with paragraph 251U(1)(f) of the ITAA 1936.
In your case, you are a citizen of a country that has reciprocal healthcare benefits with Australia and accordingly you are entitled to some Medicare benefits. Consequently you are ineligible to obtain a certificate of exemption from Medicare. As you do not fall into any of the above categories of prescribed persons you are subject to the Medicare levy.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
