Tax Return advice about Medicare levy

[Danielle9]

Hi!

 

I have been in Australia since May 2015 on a working holiday visa so a resident for tax purposes and now I'm on a bridging visa as I've applied for PR(187 visa)

 

I've heard that the Medicare levy is $900 and that because I have reciprocal health care since I'm British I can claim that $900 back whilst doing the tax return.

 

Can anybody tell me if this is correct and if so how do I go about it?! I was hoping to do my tax return myself rather than paying an agent as without the potential 900 back for Medicare then I'm only estimated $400 back so not really worth paying an agent.

 

Thanks!

 

 

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[NickyNook]

The Medicare Levy that most people pay is 2% of their taxable income. It's not a flat $900. Unless your taxable income is $45k, in which case 2% is $900..

 

Qualifying for Medicare under the reciprocal arrangement does not mean you're exempt from paying the levy.

 

You would be exempt from the levy if you were not entitled to use Medicare - but you are entitled to it, so no exemption ;-)

[Danielle9]

Ah okay. Thought it was best to check before I lodged my tax return. That would kinda make sense as I heard about it from somebody that is Irish so I don't think they are entitled to Medicare the same way as the English! All this is paperwork business gets very confusing at times with all the different rules for different visas etc etc

 

Thanks for the reply!

 

 

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[flatpack]

As an aside, you may calculate that you're entitled to $400 but a good accountant may well get you more as they know precisely what you can and cannot claim. Any fee you pay them is also tax deductible.

[Danielle9]

Thanks for the advice I might look into it some more and get some quotes. I got told I can claim $300 for expenses without receipts? Uniform wise I have actually only bought shoes that were $90 I think but have no proof of purchase.

 

 

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[Skani]

I'd recommend using a tax agent for this year's return to ensure you get maximum benefit - then use it as a template for following years. Agents around here charge about $110 for a standard PAYG employee. (And, as mentioned, that amount is deductible in the following year's return).

Edited August 24, 2016 by Skani