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Edited version of your written advice
Authorisation Number: 1013054825210
Date of advice: 19 July 2016
Ruling
Subject: Medicare levy
Question
Are you entitled to a Medicare levy exemption where you are an Australian resident for tax purposes?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
The scheme commenced on
1 July 2014
Relevant facts
You are a dual resident.
You have returned to live permanently overseas.
You have been medically certified as permanently disabled.
While living overseas you have no access to any Australian Medicare benefits.
You incur medical expenses overseas.
You are currently receiving monthly Australian income.
You are not a prescribed person.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 251S.
Income Tax Assessment Act 1936 Section 251T.
Income Tax Assessment Act 1936 Section 251U.
Medicare Levy Act 1986 Sections 8B to 8G.
Detailed reasoning
Medicare levy
Section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a Medicare levy is levied and shall be paid by an individual who is a resident of Australia at any time during the income year based on his or her taxable income for the year. The Medicare levy is levied at the rate applicable in the Medicare Levy Act 1986.
The legislation provides a Medicare levy exemption in some limited circumstances. A person may be exempt from paying the Medicare levy if they are a prescribed person as set out in sections 251T and 251U of the ITAA 1936.
A prescribed person is defined in section 251U as being:
• blind pensioners and recipients of sickness allowance from Centrelink;
• persons entitled to full free medical treatment under Defence Force arrangements or the Veterans' Entitlements Act 1986;
• a person who is not an Australian resident for taxation purposes;
• members of diplomatic missions or consular posts in Australia; and
• persons who have a certificate from the Health Insurance Commission stating that they are not entitled to Medicare benefits.
In your situation, there is no information to show that you are a prescribed person.
Accordingly, you are not exempt from paying the Medicare levy. Therefore the relevant Medicare levy will apply and is payable in your circumstances.
Whilst we acknowledge your specific circumstances, the Commissioner does not have the discretion to treat you as a prescribed person if you do not fall within one of the above categories, for any given period. Therefore you are liable to pay the Medicare levy.
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