Medicare Levy Worksheet

This item is about whether you qualify for a Medicare levy reduction or exemption. Australian residents for tax purposes are subject to a Medicare levy of 2.0% of their taxable income unless they qualify for a reduction or exemption.

If you weren't an Australian resident for tax purposes for the whole of the current income year, you can enter the number of days you're exempt from the Medicare levy.

This dialog is used when calculating the amount of Medicare levy to be included in the estimate of tax payable, based on the number of days full and/or half exemption.

Some of these values will be passed to this dialog from other entries elsewhere in the return.

Click any of labels Y, V or W to open this dialog.

Exemption categories

This list is provided for viewing only as a guide to what constitutes exemption for these purposes.

Part year residency

Pt Yr threshold (Part year threshold). If you've completed A2 in the individual return, the number of days will be automatically passed to this dialog.

Select the threshold category from the F10 drop-list and enter the date that residency commenced or ceased (Stopped).

Commenced residency
Stopped residency

We'll calculate the number of months for your tax-free threshold as:

Commenced residency: The number of months from the date commenced to the 30 June.
Stopped residency: The number of months from the beginning of the current income year to the date you stopped being a resident.

Medicare levy reduction

The medicare levy reduction applies only to partnered people where there may be a transfer of Medicare levy from one spouse to the other.

We need the marital status for calculating the Family reduction.

Marital Status at 30th June: Enter the one character code for the marital status of the taxpayer at this field. Click F10 to select from a drop-list:

Spouse's Taxable Income:

This amount is passed from the Spouse Details dialog. The spouse's taxable income is required for the family income test.

Dependent Children/Students:

Enter the number of dependents (children up to the age of 21, or students up to the age of 25, in full-time education) with Adjusted taxable income less than $1786. The number of dependents is required for calculating the increase to the Medicare Upper Threshold.

If there are no children you must key a zero.

Medicare calculation

Primary Medicare Payable: The amount displayed is recalculated each time the taxable income is changed.

Medicare Levy Surcharge Payable: This amount is calculated in accordance with the taxpayer's Private Health Insurance status and Adjusted taxable income for Medicare levy surcharge purposes.