Medicare levy reduction for low-income earners

The amount of Medicare levy you pay is reduced if your taxable income is below a certain threshold. In some cases, you may not have to pay the levy at all.

The thresholds are higher for low-income earners, seniors, and pensioners. If your taxable income is above the thresholds, you may still qualify for a reduction based on your family taxable income.

Medicare levy reduction eligibility

In 2020–21, you do not have to pay the Medicare levy if:

• you are single, and
• your taxable income is equal to or less than $23,226 ($36,705 for seniors and pensioners entitled to the seniors and pensioners tax offset).

The amount of Medicare levy you pay will be reduced if:

• you are single, and
• your taxable income is between $23,226 and $29,033 (between $36,705 and $45,881 for seniors and pensioners entitled to the seniors and pensioners tax offset).

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.

Remember, we are here to help you with your Tax and BAS. Contact us on 0481 953 556 or email us at service@protaxaccounts.com.au to find out more.

Source: ATO.gov.au. Medicare levy reduction for low-income earners. Link available here