Item M1 - Full Medicare levy reduction or exemption

If you are a low-income earner or were in one of the Medicare levy reduction or exemption categories during the current income year, you may be entitled to a Medicare reduction or exemption.

If you have a spouse, you may not get the seniors and pensioners tax offset even if you meet all the eligibility conditions as the amount of the tax offset is based on your individual rebate income, not your combined rebate income. If you do not get the offset, merely being eligible for it will not entitle you to a Medicare Levy reduction.

Click this link for the information provided on the ATO website to assist in completing Item M1 Medicare levy reduction or exemption.

Tax provides the Medicare Levy worksheet at this item, refer to Medicare Levy Worksheet.

If the taxpayer has a spouse and/or child dependants, the Spouse category in the Medicate Levy and Part-Year Tax-Free Threshold (mlv) worksheet must be selected and the number of child dependants entered, even if zero, in order that the correct reduced Medicare Levy and any share of the family reduction amount is correctly calculated in the Estimate.

CCH References

2-290 Medicare levy - who is liable?

2-310 Who is a dependant for Medicare levy purposes? 

2-330 Relief for low income earners

2-340 Exemptions for prescribed persons

2-360 Partial relief from levy