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Item 56 - Medicare levy reduction or exemption

The current income year rate for the Medicare levy us 2%.

Complete labels A, B, C and D as applicable.

Medicare levy surcharge

If the beneficiary’s share of the trust net income to which a trustee is assessed under section 98 exceeds either $90,000 (if single) or $180,000 for the family surcharge threshold (plus $1500 for each dependent child after the first) the trustee may be liable for the Medicare levy surcharge (MLS). See Question M2 in the Individual tax return instructions.

There is no ATO label to disclose the number of days and you'll need to prepare an 'Other Attachments' schedule to provide the ATO with the relevant details for the Notice of Assessment..

Provide a statement on a separate sheet of paper showing:

  • the trust’s name

  • the trust’s TFN

  • the beneficiary’s name

  • the beneficiary’s TFN

  • the beneficiary’s share of the net income of the trust estate

  • the number of days not liable for MLS

  • the full name of beneficiary’s spouse, if applicable

  • if the beneficiary did not have a spouse for the full year (the period they had the spouse)    

  • the date from which the beneficiary had a spouse

  • the date to which the beneficiary had a spouse

  • if the beneficiary’s spouse died during the year

  • the spouse’s income for (Medicare levy) surcharge purposes, if applicable

  • the number of dependent children, if applicable

  • the health insurer identification (ID) code, if applicable

  • the membership number, if applicable.

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