Medicare Levy

In this Guide, we explain the Medicare Levy and the Medicare Levy Surcharge. The Australian Government uses the Medicare Levy to help fund Medicare. You will have to pay the Medicare Levy on your taxable income unless you are eligible for an exemption. If you earn over a certain amount and do not have an...

Yes. If you are from a country that has a reciprocal healthcare agreement with Australia enabling you to access Medicare and you earn over the Medicare Levy Surcharge threshold, you can avoid the Surcharge by buying an approved Hospital Cover insurance policy. Unfortunately, this type of insurance provides limited benefits for Hospital Cover and you...

You can avoid paying the Medicare Levy Surcharge by taking out a private health insurance policy that includes Hospital Cover. The excess on your Hospital Cover needs to be: These types of health insurance do not allow you to avoid paying the Medicare Levy Surcharge:

The Medicare Levy Surcharge is 1%, 1.25% or 1.5% depending on: The income thresholds for 2024-2025 are: Singles Income Rate $97,000 or less 0% $97,001 – $113,000 1.0% $113,001 – $151,000 1.25% $151,001 or more 1.5% Single parents, Couples and Families* Income Rate $194,000 or less 0% $194,001 – $226,000 1.0% $226,001 – $302,000 1.25%...

The Medicare Levy Surcharge is an extra charge you have to pay if you do not have Hospital Cover. It is designed to encourage you to take out Hospital Cover and use the private health system.  The Australian government’s larger objective is to reduce pressure on Australia’s public health system. If you have to pay...

If you want to apply for a Medicare Levy Exemption, you can do this as part of your tax return. You need a Medicare Entitlement Statement (MES) to apply for an exemption. You need a Medicare Entitlement Statement for each year you want to get an exemption. When you lodge your tax return, you need...

A Medicare Levy Exemption is when you do not have to pay the Medicare Levy. You may be entitled to the Exemption if you meet any of these criteria: If you successfully apply for a Medicate Levy Exemption, you do not have to pay the Medicare Levy for all or part of the year.

The Medicare Levy is a tax you pay to help fund some of the cost of Australia’s public health system, known as Medicare. Australians help pay for Medicare through 2 income taxes: The Medicare Levy is 2% of your taxable income (in addition to the tax you pay on your taxable income). Depending on you...