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Edited version of your written advice
Authorisation Number: 1012717558444
Ruling
Subject: Medicare levy
Question
Are you liable for Medicare Levy and Medicare Levy Surcharge (MLS) while you are at post overseas?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
The scheme has commenced
Relevant facts
Your spouse is a member of the Defence Force.
Your spouse was posted overseas during the relevant financial year.
You and your children went overseas with your spouse.
During the time you were overseas, you and your family were covered for full private medical expenses by the Defence Force.
You suspended your private hospital cover for the period you were overseas and returned to full coverage under an appropriate level of private patient hospital cover once you returned to Australia.
Relevant legislative provisions
Medicare Levy Act 1986 Section 8D
Medicare Levy Act 1986 Subsection 3(5)
National Health Act 1953 Section 5A
Reasons for decision
Section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) provides that the Medicare levy is payable by any person who, at any time during the relevant year of income, is a resident of Australia. There is a provision in section 251T of the ITAA 1936 which allows "prescribed persons" to be exempted from the Levy.
The prescribed persons are listed at section 251U of the ITAA 1936 to include a person who is entitled to free medical treatment as a member of the Defence Force or as a relative of, or was otherwise associated with, a member of the forces.
In your case, you are a prescribed person. Therefore, you are not liable for the Medicare levy for the period you are posted overseas. Furthermore, as your dependants are also in an exemption category, you also are not liable for Medicare Levy Surcharge for that same period.
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