In 2023–24, you do not have to pay the Medicare levy if your taxable income is equal to or less than the lower threshold.
Your Medicare levy will be reduced if your taxable income is above the lower threshold and at or below the upper threshold. We work out the reduction for you when you lodge your tax return.
|
Category |
Lower |
Upper |
|---|---|---|
|
If you were entitled to the Seniors and pensioners tax offset |
$41,089 |
$51,361 (see note 1) |
|
All other taxpayers |
$26,000 |
$32,500 |
Note 1: The entitlement to the seniors and pensioners tax offset for singles ceases when the rebate income reaches $50,119.
You may still qualify for a reduction based on your family taxable income.
If you do not 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 $27,000. Angie is single with no dependants and she is not entitled to SAPTO. Angie isn't eligible for any Medicare levy exemptions.
Angie is entitled to a Medicare levy reduction because her taxable income is less than the 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 $100.
End of example