Medicare Levy 2009-10

To help pay for the Medicare health scheme, resident taxpayers are subject to a Medicare levy.

The rate of the Medicare levy is 1.5% of taxable income.

Most Australians will have to pay the Medicare levy. Generally, tax offsets do not reduce your Medicare levy. In some cases, you may be exempt from the levy or eligible for a reduction based on family income.

 

Taxpayer Rate %
Individual (resident) 1.5% of taxable income

Low Income Thresholds – Individuals

The Medicare Levy is not payable (or is payable at reduced rates) by individuals and families on low incomes and by certain pensioners. The 2008-09 Medicare Levy low-income thresholds for individuals are as follows:

Single Taxpayer Threshold Amount 1 Phase-in Limit 2 1.5% at or Above 3
Not eligible for Senior Australians Tax Offset or Pensioner Tax Offset 18,488 18,489 – 21,750 21.751
Eligible for the Senior Australians Tax Offset 29,867 29,868 – 35,137 35,138
Eligible for Pensioner Tax Offset only 27,697 27,698 – 32,584 32,585

1. No Medicare Levy is payable on taxable income at or below the threshold amount.

2. Medicare Levy is payable at 10% of the excess over the threshold amount.

3. The Medicare Levy of 1.5% applies to the entire amount of taxable income.

Families

The Medicare Levy low-income threshold for families will be $31,196 (previously $30,025), and the additional amount of threshold for each dependent child or student will increase to $2,865 (previously $2,757).

Online Calculator

The Australian Taxation Office has an online Medicare Levy Calculator. The calculator can provide an estimate of your Medicare levy, taking into account any entitlement to a reduction or exemption.

In order to use the calculator you may need to know your taxable income, your spouse’s taxable income and if you are eligible for an exemption.

This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.