When you don't pay the Medicare levy
In 2024–25, you don't have to pay the Medicare levy if your taxable income is equal to or less than the lower Medicare levy threshold. Check the thresholds, see, Table: Medicare levy thresholds for a single individual.
Medicare levy reduction thresholds for singles
Your taxable income must be equal to or less than the relevant upper threshold in the table for you to qualify for a reduction. We work out the reduction for you when you lodge your tax return.
Category | Lower | Upper |
|---|---|---|
If you're entitled to the Seniors and pensioners tax offset | $43,020 | $53,775 |
All other taxpayers | $27,222 | $34,027 |
Note 1: The entitlement to the seniors and pensioners tax offset (SAPTO) for singles ceases when the rebate income reaches $52,759.
If you don't qualify for a single reduction, you may still qualify for a reduction based on your family taxable income.
If you don't qualify for a reduction in the Medicare levy, you may still qualify for a Medicare levy exemption.
You can use the Medicare levy calculator to work out your Medicare levy payable.
Example: Medicare levy reduction based on income within the threshold
Angie's taxable income is $29,000. Angie is single with no dependants and she isn't entitled to SAPTO. Angie isn't eligible for any Medicare levy exemptions.
Angie qualifies for a Medicare levy reduction because her taxable income is less than the upper threshold. Angie completes her tax return and we work out her Medicare levy reduction for her.
Angie uses the Medicare levy calculator to find out how much Medicare levy she will pay. She enters her details and finds out her Medicare levy will be reduced to $177.80
End of example