Medicare levy is imposed on the taxpayer’s taxable income to fund Australian Medicare scheme which provides all Australian residents access to low cost or free medical care.
The amount is calculated at a flat rate of 2% of a taxpayer’s taxable income. For low income earners, Medicare levy low income threshold applies.
- Taxable income
- Medicare levy payable
- $0 - $20,896
- Nil
- $20,896 - $26,121
- 10% of excess over $20,896
- $26,121 and above
- 2% of entire taxable amount
For high income earners who do not have private hospital cover, Medicare levy surcharge may be liable.
- Income
- Medicare levy surcharge
- Singles: $0 - $90,000
Families: $0 - $180,000
- Nil
- Singles: $90,001 - $105,000
Families: $180,001 - $210,000
- 1%
- Singles: $105,001 - $140,000
Families: $210,001 - $280,000
- 1.25%
- Singles: $140,001+
Families: $280,001+
- 1.5%
