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Edited version of private advice
Authorisation Number: 1012678140235
Ruling
Subject: Medicare levy surcharge
Question and answer
Can the Commissioner exercise his discretion to exempt you from paying the Medicare Levy surcharge?
No.
This ruling applies for the following periods:
Year ending 30 June 2015
The scheme commenced on:
1 July 2014
Relevant facts and circumstances
You have difficulties obtaining health insurance due to medical conditions.
You are required to pay a higher than usual premium to obtain health insurance.
You believe you are being discriminated against.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 251U.
Income Tax Assessment Act 1997 Section 251R.
Medicare Levy Act 1986 Section 8D.
Reasons for decision
The Medicare levy surcharge applies to individuals and families who are on higher incomes and who do not have adequate private patient hospital insurance cover.
If you do not have adequate private patient hospital cover, you will be subject to the Medicare Levy Surcharge if you are:
• an individual taxpayer whose taxable income for Medicare Levy Surcharge purposes exceeds individual surcharge threshold or
• a member of a family and the combined taxable income for Medicare Levy Surcharge purposes exceeds family surcharge threshold.
Medicare levy surcharge is a levy that applies to you if you or your dependants did not have an appropriate level of private patient hospital cover for the whole of the income year, and your income is above the surcharge threshold.
There are no provisions in the legislation to exempt a taxpayer from paying the surcharge because they are unable to obtain health insurance or the health insurance is too expensive.
The Commissioner does not have any discretion to exempt taxpayers from paying the Medicare levy surcharge if their income exceeds the relevant threshold for an income year.