Medicare Levy

[purplealster]

Hi,

 

A quick question... how is the Medicare Levy paid? Is this something that comes out of your salary each month or is it payable at the end of the tax year via your tax return?

 

Thanks

 

Purp

[Guest The Pom Queen]

Hi Purp

This may help

Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, resident taxpayers pay a Medicare levy. The amount of levy you pay is based on your taxable income and is in addition to your income tax. It isn't reduced by any tax offsets you may be entitled to unless they are refundable tax offsets.

 

Normally, your Medicare levy is calculated at 1.5% of your taxable income but this rate may vary depending on your circumstances. In some cases you may be exempt from the levy or it may be reduced. There is a threshold amount below which you don't pay any Medicare levy. This also varies with your circumstances.

Individuals and families on higher incomes who do not have private patient hospital cover may have to pay the Medicare levy surcharge. This surcharge is in addition to the Medicare levy. It is calculated at the rate of 1% of your taxable income (including your total reportable fringe benefits).

The Medicare levy is withheld from your pay by your payer along with the tax you need to pay.

 

People who are not Australian residents for tax purposes do not pay the Medicare levy because they are not entitled to Medicare benefit

[RockDr]

People who are not Australian residents for tax purposes do not pay the Medicare levy because they are not entitled to Medicare benefit

 

The two are unrelated. It is quite possible to be resident for tax purposes, but still not be entitled to medicare benefit. e.g. on a 457 visa. The fact that UK citizens on temporary visas get reciprocal medicare has nothing to do with their tax residency status.