Program objectives
The objectives of this data-matching program are to:
- ensure individuals are correctly claiming exemption from payment of the Medicare levy and Medicare levy surcharge
- work with taxpayers and intermediaries to better understand the identified risks and trends for non-compliance
- develop education strategies so compliance is better understood and easier in the future
- speed up processing of tax returns and payment of refunds to taxpayers who are genuinely entitled to claim these exemptions
- undertake verification activities where the information obtained indicates a taxpayer may not be entitled to claim the exemption, either partly or in its entirety
- help ensure that individuals and businesses are fulfilling their tax and super registration, lodgment, reporting and payment obligations
- promote voluntary compliance by communicating how we use external data with our own, to help encourage taxpayers to comply with their tax and super obligations.
Why we look at this data
The Services Australia specified benefits and entitlements data-matching program will allow us to:
- identify and address incorrect claims to the Medicare levy exemption and Medicare levy surcharge as reported in tax returns by clients
- provide education and assistance to support correct reporting of client information in tax returns.
Claims for exemption from payment of the Medicare levy and Medicare levy surcharge may be disallowed where:
- individuals declare they are not entitled to receive Medicare benefits but do not hold a valid Medicare entitlement statement (MES) issued from Services Australia
- the number of days individuals claim they are not entitled to receive Medicare benefits is different to what is included in the MES.
The data also allows us to exclude clients with a genuine Medicare levy exemption and Medicare levy surcharge claim. Excluding these clients from compliance action ensures they do not receive unnecessary contact from us.
For more information see not entitled to Medicare benefits.