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Edited version of private ruling
Authorisation Number: 1011679320069
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Ruling
Subject: Medicare levy exemption
Does the Commissioner have any discretion to treat you a prescribed person if you do not fall within one the exemption categories for Medicare levy?
No.
This ruling applies for the following periods:
Year ended 30 June 2010
Year ending 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
Year ending 30 June 2014
The scheme commences on:
1 July 2010
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You and your spouse are temporary residents holding a visa granting you and your spouse to stay in Australia for ten years.
It is a condition of this visa that you are not entitled to Medicare benefits.
You obtain a Medicare Levy Exemption Certificate for each income year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 251S
Income Tax Assessment Act 1936 Section 251T
Income Tax Assessment Act 1936 Section 251U.
Reasons for decision
While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.
Summary
The Commissioner does not have the discretion to treat you as a prescribed person if you do not fall within one of the six categories, for any given period.
Detailed reasoning
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.
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. The Medicare levy exemption categories for a prescribed person are:
· a blind pensioner or a sickness allowance beneficiary from Centrelink
· a person is entitled to full free medical treatment for all conditions under defence force arrangements or Veterans Affairs Repatriation health card (gold card) or repatriation arrangements
· a person who is not an Australian resident for tax purposes
· a resident of Norfolk Island
· a member of a diplomatic mission or consular post in Australia or a member of such a persons family and the person was living with them and the person was not an Australian citizen and they did not ordinarily live in Australia, and
· a person has a certificate from the Medicare Levy Exemption Certification Unit of the Health Insurance Commission showing that they are not entitled to Medicare benefits.
In your situation, you have obtained in the past an exemption certificate for each income year from Medicare. As you have an exemption certificate for each of those income years, you will not be liable to pay Medicare levy for those periods.
However, whilst we recognise the necessity for you to obtain an exemption certificate every income year as required by Medicare may be inconvenient, the Commissioner does not have the discretion to treat you as a prescribed person if you do not fall within one of the six categories, for any given period.