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This edited version has been archived due to the length of time since original publication.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 private ruling

Authorisation Number: 1011909770884

This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

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Ruling

Subject: Medicare levy

Question and answer:

Are you entitled to a Medicare levy exemption for the 20XX-XXand 20XX-XX financial years?

No

This ruling applies for the following periods:

Year ending 30 June 2010

Year ending 30 June 2011

The scheme commenced on:

1 July 2009

Relevant facts:

You were a resident of Australia for tax purposes for the 20XX-XXand 20XX-XX financial years.

You were outside of Australia during most of the 20XX-XXand 20XX-XX financial years.

You were unable to make use of the Australian health care system during the time you were overseas.

You do not meet any of the Medicare levy exemption categories listed under section 251T of the Income Tax Assessment Act 1936.

Reasons for decision

Section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a Medicare levy 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.

However, Sections 251T and 251U of the ITAA 1936 provide that the Medicare levy is not payable by certain classes of persons, referred to as prescribed persons. An exemption from the levy is conferred by Section 251T of the ITAA 1936 for a person who is a prescribed person during the year of income. 

You are entitled to an exemption from the Medicare levy for the years requested, if you were in one of the following exemption categories: 

    · You were a blind pensioner or you received the sickness allowance from Centrelink;

    · You were entitled to full free medical treatment for all conditions under Defence Force arrangements or Veterans Affairs Repatriation Health Card (Gold Card) or repatriation arrangements;

    · You were not an Australian resident for tax purposes;

    · You were a resident of Norfolk Island;

    · You were a member of a diplomatic mission or consular post in Australia or a member of such a persons family and you were living with them and you were not an Australian citizen and you do not ordinarily live in Australia;

You have a certificate from the Levy Exemption Certification Unit of the Health Insurance Commission showing that you are not entitled to Medicare benefits. A letter from Medicare is not sufficient.  

You were an Australian resident for tax purposes for the 20XX-XXand 20XX-XX financial years. You have advised that you were overseas and therefore unable to use the Australian health care system during these financial years.

However as you do not meet any of the exemption categories listed above; you are liable to pay full Medicare levy for both the financial years, as per section 251S of the ITAA 1936.


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