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Edited version of your written advice
Authorisation Number: 1012715338459
Ruling
Subject: Medicare Levy and Medicare Levy Surcharge
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 2014
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
The scheme commenced on
1 July 2013
Relevant facts
You are a civilian employee an Australian Defence organisation.
You were posted to the Embassy of Australia overseas for between 20XX and 20YY.
While at post, you and your family are covered for all medical expenses.
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 member of the staff of the consular staff of a consular post established in Australia or a member of the family of that person.
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.