A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999

PART 3 - AMOUNT OF SURCHARGE PAYABLE  

Division 3 - Amount of surcharge for single person with dependants  

SECTION 13   AMOUNT OF SURCHARGE FOR SINGLE PERSON WITH DEPENDANTS  

13(1)   Application.  

This Division applies to a person for a period in a year of income if:

(a) the person ' s income for surcharge purposes for the year of income exceeds the person ' s family tier 1 threshold for the year of income; and

(b) during the whole of the period:

(i) the person is not a married person; and

(ii) the person has one or more dependants; and

(iii) the person, or at least one of the person ' s dependants, is not covered by an insurance policy that provides private patient hospital cover; and

(iv) the person is not a prescribed person.

13(2)   Special rules for applying subparagraph (1)(b)(iii).  

For the purposes of subparagraph (1)(b)(iii):

(a) the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection 251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph 251U(1)(a) , (b) , (ca) , (caa) or (cb) of that Act; and

(b) disregard each of the person ' s dependants who:

(i) is a prescribed person for the period; or

(ii) would be a prescribed person for the period apart from subsection 251U(2) of the Assessment Act.

Note:

Paragraphs 251U(1)(a) , (b) , (ca) , (caa) and (cb) of the Assessment Act provide that the following are prescribed persons:

• defence personnel and members of their families who can get free medical treatment;

• people who can get free medical treatment under the Veterans ' Entitlements Act 1986 , the Military Rehabilitation and Compensation Act 2004 , the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019 ;

• people who receive certain payments under the Social Security Act 1991 or the Veterans ' Entitlements Act 1986 .

Subsection 251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons.

13(3)   Amount of surcharge payable for whole year.  

The amount of surcharge payable on the person ' s reportable fringe benefits total for the year of income is 1% of that total if this Division applies to the person for the whole of the year of income.

13(4)   Amount of surcharge payable for part of year.  

If this Division applies to the person for only some of the days of the year of income, the amount of surcharge payable on the person ' s reportable fringe benefits total for the year of income includes the amount worked out using the formula:

(1% of the person ' s reportable fringe benefits total for the year of income)

×

Number of those days Number of days in the year of income

13(5)    

Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

13(6)    

Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.